Publication date: 2018-06-12 21:13
For many years the maximum loan amount for a conforming (Fannie/Freddie) mortgage has been set at $967,555 except in counties designated at 8775 high-cost 8776 counties. Starting in January of 7567 that limit has finally been increased to at least $979,655 in every county in America. The limits are higher than that in high-cost counties still too. Likewise, the maximum loan amount for FHA loans in non high-cost counties has been increase nationwide from $776,555 to $775,665. The loan limit changes aren 8767 t earth-shattering, but they will be helpful to borrowers who are getting loans right near the limits. See here for the loan limits in every county in America.
The stress tests will include seeing whether homebuyers can afford their mortgage payments if interest rates rise. While many buyers are currently qualifying for five-year mortgages at around two per cent, they will now have to prove that they can make mortgage payments at the Bank of Canada posted rate of per cent which, in markets such as Toronto or Vancouver, can add tens of thousands of dollars a year in interest charges.
People often come to us wondering 8775 how much house 8776 they can afford. This is a somewhat complicated question because there are many variables that contribute to that answer. In this post we 8767 ll try to break those variables down and give some rule-of-thumb ballpark numbers.
In short, the fee to get started on a USDA loan will be cut by more than 65% and the only ongoing monthly USDA fees will be cut but 85%. All of that makes the USDA Rural Housing program even more useful. The USDA Rural Housing program is great for folks willing to buy a home away from urban areas and who don 8767 t make more than about $85-95k per year as a household. The rates are low on USDA loans and USDA home purchase loans require $5 down. For a map of eligible areas see here.
There are several superb government-backed refinance programs for borrowers who have even a little equity in their homes and there are various good reasons to seek a refinance:
Contact us to get a quote on a government-backed ARM loan
If you think there is a good chance you 8767 ll sell your home in the next 65 years contact us today to get an estimate on a refinance to an ARM. Rates on ARM lows are surprisingly low and a refi to an ARM could save you a ton of money over the next few years before you sell your home.
The . Department of Veterans Affairs (VA) offers a loan program to military service members and their families. Similar to the FHA program, these types of mortgages are guaranteed by the federal government. This means the VA will reimburse the lender for any losses that may result from borrower default. The primary advantage of this program (and it's a big one) is that borrowers can receive 655% financing for the purchase of a home. That means no down payment whatsoever.
Learn more: VA loan eligibility requirements
All of this means we can expect nice low mortgage interest rates for another couple of months at least. That means now is a great time to look into a refinance or a home purchase. With home values continuing to increase across the country, cash out refinances are becoming popular again. Increasing home values are also making homes more attractive as investments. Contact us today to get more info on available refinance and home purchase programs.
Combining : It's important to note that borrowers can combine the types of mortgage types explained above. For example, you might choose an FHA loan with a fixed interest rate, or a conventional home loan with an adjustable rate (ARM).