Nick Pakulla - Mortgage Lender Loan Officer in MD, DC, VA

September 30^th and October 1^st are important in our industry as several government loan limits are set to change:

• Conventional Fannie Mae loan limits will be changing,
• FHA mortgage loan limits will be changing, and
• VA loan limits will not be changing yet, however, VA funding fees will be changing

Fannie Mae loan limits: https://www.efanniemae.com/sf/refmaterials/loanlimits/xls/loanlimref.xls

Use the above referenced table to check the Fannie Mae loan limits.  Additionally, if your home purchase is affected by the loan limits going down utilize our bank’s second trust mortgage to allow you to purchase your home above the loan limits with as little as 10% down.  See my 80/10/10 second mortgage blog post and an article in the Wall Street Journal referencing our bank

FHA:

FHA loan limits https://entp.hud.gov/idapp/html/hicostlook.cfm

The FHA loan limits will also generally follow the change in the Fannie loan limits, but you can search by state via the link above.

VA:

VA Loan limits http://www.benefits.va.gov/homeloans/loan_limits.asp

The maximum guaranty for VA guaranteed loans closed October 1, 2011 through December 31, 2011 will remain unchanged. The Veterans’ Benefits Improvement Act of 2008 provided a temporary increase in VA loan limits for loans closed January 1, 2009 through December 31, 2011. Because of this legislation, VA loan limits will remain the same for the remainder of the calendar year. Please note that VA does not have a maximum loan amount. Loan limit refers to the maximum loan a lender could make and still receive a 25% guaranty from VA, assuming the veteran has full entitlement.

VA Funding Fee Changes

VA Funding fees going down: http://activerain.com/blogsview/2514838/va-funding-fee-changes-going-down-effective-october-1st

First Place Bank’s 80/10/10 loan program was recently mentioned in the Wall Street Journal Online as an example of a creative way to assist buyers (and sellers) above the lowering Fannie Mae county loan limits! 

September 16, 2011, Will Expiring Loan Limits Kill My Sale?  By June Fletcher. Link: http://on.wsj.com/rd289k

Q. My house is for sale for $878,000. I have already dropped the price three times, and can't afford to drop it any lower. I am very worried about the upcoming expiration of conforming loan limits, and what that will do to the pool of buyers that can get a mortgage to buy my house. Your thoughts?  --Arlington, Va.

A. “… buyers could find a lender who will provide a piggyback loan that allows a lower down payment. Such lenders generally are community or niche banks that keep such loans in their own portfolios. For instance, in your area, First Place Bank is offering an 80/10/10 loan that requires a 10% minimum down payment. The bank makes a first loan up to the conventional limit in tandem with a second.” 

Thank you for helping to spread the word!

VA announces a decrease to the VA funding fee effective October 1st.  For the full notice you can find it at: http://www.benefits.va.gov/HOMELOANS/circulars/26_11_12.pdf

Purpose: This circular announces changes in funding fees for Department of Veterans Affairs (VA) loans closed on or after October 1, 2011.

By Direction of the Under Secretary for Benefits

Michael J. Frueh
Acting Director, Loan Guaranty Service

Loan Fee Structure for Guaranteed Loans

First Time Use	Veteran	Reservist/National Guard
Down payment:   Less than 5 percent*: – October 1, 2004 until October 1, 2011 – On or after October 1, 2011 At least 5 percent but less than 10 percent: – Before October 1, 2011 – On or after October 1, 2011 10 percent or more: – Before October 1, 2011 – On or after October 1, 2011	2.15%  1.40%     1.50%  0.75%    1.25%  0.50%	2.40%  1.65% 1.75%  1.00%  1.50%  0.75%
Second and Subsequent Use Down payment:   Less than 5 percent*: – October 1, 2007 until October 1, 2011 – October 1, 2011 until October 1, 2012 – October 1, 2012 until October 1, 2013 – On or after October 1, 2013 At least 5 percent but less than 10 percent – Before October 1, 2011 – On or after October 1, 2011 10 percent or more – Before October 1, 2011 – On or after October 1, 2011   Refinancing Loans: Interest rate reduction .5%	3.30%  2.80%  2.15%  1.25%     1.50%  0.75%    1.25%  0.50%	3.30%  2.80%  2.15%  1.25%  1.75%  1.00%    1.50%  0.75%