Federal borrowing limits were increased for the first time in more than a decade last week because of rising home prices across the nation. The Federal Housing Financing Agency had capped the baseline loan limit since 2006 as home prices dropped during the recession.
The new rates, used for conforming loans acquired by Fannie Mae or Freddie Mac, will take effect Jan. 1. In general, federally backed loans allow for smaller down payments and, theoretically, help more people enter the home market.
In San Diego County, loan limits for a typical single-family home will be $612,950, up 6 percent from where they are now. Those limits are higher than the national baseline of $424,100.
read more at: http://www.sandiegouniontribune.com/business/real-estate/sd-fi-mortgage-borrowing-20161130-story.html
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HARP program will continue through September 2017, FHFA says
Companies will launch a new refinance program in October 2017
Fannie Mae and Freddie Mac are extending one of the most successful federal programs enacted in response to the mortgage crisis into next year, even as the pool of borrowers who could benefit from it continues to shrink.
Borrowers can continue to use the Home Affordable Refinance Program, or HARP, though September next year, the Federal Housing Finance Agency, which regulates the mortgage-finance companies, said Thursday. HARP allows some borrowers to refinance to a lower rate even if the equity they have in their home is less than 20 percent, the typical cutoff for some refinances.
read more at: http://www.bloomberg.com/news/articles/2016-08-25/fannie-mae-freddie-mac-extend-crisis-era-refinance-program
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Policy changes by two of the biggest players in the mortgage market could open doors to home purchases this fall by thousands of people who were hard hit by the housing bust and who thought they’d have to wait for years before owning again.
Fannie Mae, the federally controlled mortgage investor, has come up with a “fix” designed to help large numbers of consumers whose short sales were misidentified as foreclosures by the national credit bureaus. Under previous rules, short-sellers would have to wait for up to seven years before becoming eligible for a new mortgage to buy a house. Under the revised plan, they may be able to qualify for a mortgage in as little as two years. Homeowners who are foreclosed upon generally must still wait for up to seven years before becoming eligible again to finance a house through Fannie. Industry estimates suggest that more than 2 million short-sellers might be affected by credit bureaus’ inaccurate descriptions of their transactions.
Meanwhile, the Federal Housing Administration has announced a new program allowing borrowers whose previous mortgage troubles were caused by “extenuating circumstances” beyond their control to obtain new mortgages in as little as a year after losing their homes instead of the current three years. They will need to show that their delinquency problem was caused by a 20 percent or greater drop in income that continued for at least six months, and that they are now “back to work,” paying their bills on time and earning enough to qualify for a new FHA-insured mortgage.
Read more at: http://www.utsandiego.com/news/2013/Sep/08/tp-changes-may-allow-many-back-in-market/?#article-copy