Category: Industry News

FHA Loan Limit Increase on the Way for 2018

Good news!  Yesterday, the Federal Housing Administration (FHA) announced an increase to loan limits for FHA loans in 2018.  This comes as a sigh of relief for homebuyers in 3,011 counties.  For the past three years, the FHA has increased the number of counties to benefit from higher loan limits, with the biggest bump in 2017.  For 2018, we will see an additional 63 counties added to the list, thus bringing the number of counties up to 3,011.  Thanks to the Housing and Economic Recovery Act of 2008, the FHA sets the single family forward loan limits at 115% of the median house price.  It’s subject to floor and ceiling limits therefore check with your loan officer for more information. 

So how much is the increase?  Well, in some high end areas, such as Los Angeles County, the ceiling will increase from $636,150 to $679,650.  That is a 6.8% increase and it adjusts to meet the lending needs of homebuyers in areas where the cost of homes has grown significantly.  The floor increases as well from $275,665 to $294,515.  Even though most of the counties in the U.S will benefit from the increase, 228 counties won’t be positively impacted.  Loan limits in those counties will remain the same. 

 Along with FHA loans, the FHA insured Home Equity Conversion Mortgages (HECM) or reverse mortgages will see an increase as well.  HECM adjustments aren’t done on a county basis; therefore, it’s only a single assessment for the whole nation.  That number will go up from $636,150 to $679,650 and this is great for those who qualify for the program.  

If you’re in the market today and need to find a lender to work with, give me a call to help you finance your next mortgage transaction.  I’m ready to help you with your financing questions, and I’ve got plenty of experience with loan limits, mortgage products, and market information to help you make the right choice.  

Ellie Mae: More single, female Millennials are buying homes

Loan software provider Ellie Mae just put out its latest “Millennial tracker” and found several similarities in homebuying across gender lines in this generation — with one big difference.

“While men make up the larger percentage of overall Millennial borrowers, most of them are married,” said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae. “An interesting trend we’ve been tracking all year is that single women are buying homes much more than single men. 60% of women who were listed as the primary borrower in October were single, compared to 42% of men.”

 

 

Read the source article at U.S. Housing Finance News

Increase in Loan Limit on the Horizon for 2018

The Federal Housing Finance Agency (FHFA) recently released the home-price index for the third quarter and their findings are quite interesting.  It looks like the U.S real estate market continues to grow with an increase of 6.5% in the past year.  With a healthy and vibrant economy, the real estate market moves forward as demand continues to increase as well.

So, what does this mean for home buyers who are looking to finance their next home?  Well, the same agency that released the real estate data also determines the direction for Fannie and Freddie conforming loan limits.  The FHFA will be increasing the limits for 2018, and if you’re looking for your next home, know that there is some relief in sight. For example, the loan limit in Los Angeles County will increase to $679,650 and in Dallas County the loan limit will increase to $453,100. Click here to look up your county. This adjustment will help alleviate the burden for homebuyers seeking to take advantage of lower interest rates through conforming loan programs.

If you’re in the market today and need to find a lender to work with, give me a call and I can help you finance your next mortgage transaction. I’m ready to answer your financing questions, and I have plenty of experience with loan limits, mortgage products and market information to help you make the right choice. Give me a call or shoot me an email if you’re ready to get started or if you have any questions.

Source: Federal Housing Finance Agency

Home price appreciation starting to slow down

Home price appreciation continues to increase at a much higher than normal pace, although the rate of growth has been slowing since the summer.

Median home values increased by 6.5% in October, the 15th consecutive month the rate has been above 6%, according to Zillow. However since peaking at 7.3% in May, the rate of appreciation has been down or flat in the succeeding months. The median value increased by 6.7% in September and 6.5% in October 2016.

Read the source article at National Mortgage News

As home prices reach pre-recession levels, has market truly recovered?

According to a report from Realtor.com analyzing the property market since the Great Recession, the overall housing market has returned to pricing levels last seen in 2006. The U.S. median home sale price last year was $236,000, two percent higher than 2006. But that’s not a comparison meant to spook homeowners and investors fearing a repeat of the housing crash.

Though current prices are similar to pre-recession days, there are many other factors that are different today than they were 11 years ago. For example, inventory is much lower than it was before the recession.

Additionally, lending practices are stricter, with the intention of preventing another recession.

The report reminds readers that the crash was not caused by housing prices but by others factors that are now better controlled.

Read the source article at Curbed

Fewer First-Time Homebuyers in the Market

The share of sales to first-time homebuyers fell this year to 34 percent, the lowest level since 1981, according to data released by the National Association of Realtors (NAR). Last year’s level was 35 percent, and the decline was primarily attributed to a lack of housing supply.

Another problem facing potential first-time homebuyers is student debt, which makes saving for a downpayment difficult.

Read the source article at National Mortgage Professional Magazine

Bill introduced to eliminate FHA life of loan insurance premium

Could the Federal Housing Administration’s life of loan insurance requirement soon be a thing of the past? Cutting the life of loan policy, which requires most FHA borrowers to maintain mortgage insurance throughout their entire loan term, is a change that many in the housing business have wanted for years, and now, eliminating that policy is officially on the table, thanks to a newly introduced bill in Congress.

Read the source article at U.S. Housing Finance News

Bitcoin is finally buying into US real estate

Bitcoin is already in retail and restaurants — so it was only a matter of time before the cryptocurrency took on real estate. That time is now. Bitcoin is slowly making its way into closings on everything from Lake Tahoe land in California to Manhattan condos to single-family homes in the heart of Texas.

“Our buyer has evolved, they’ve moved from mom and pops to young people who want to pay with various forms of payment,” said Ben Shaoul, president of Magnum Real Estate Group. “Cryptocurrency is something that has been asked of us — ‘Can you take cryptocurrency? Can we pay that way?’ — and of course when somebody wants to pay you with a different form of payment, you’re going to try to work with them and give them what they want, especially in a very busy real estate market.”

Read the source article at cnbc.com