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Tuesday, 12 December 2017 22:43

KKOB December 12

Fannie Mae and Freddie Mac just made a huge announcement. Ben Lucero discusses what it is and what it means for shoppers as they search for new homes in 2018.

Published in Radio
Tuesday, 12 December 2017 22:34

New Conforming Loan Limit for 2018

In early December 2017, Fannie Mae and Freddie Mac, government sponsored enterprises responsible for keeping the residential mortgage market stable, made a huge announcement. Starting in January of 2018, conforming loan limits on conventional mortgages will increase from $423,100 to $453,100. What does this mean for buyers? Indigo Mortgage is here to explain:

Now that the conforming loan limit has increased, borrowers can take out a loan up to $453,100 before having to take out a jumbo loan. Jumbo loans generally have higher interest rates, and unlike conforming loans, they aren’t backed by federal agencies. Because they aren’t backed by Fannie Mae and Freddie Mac, lenders take on higher risk when they offer jumbo loans, thus they are more difficult to qualify for.

Indigo Mortgage is proud to announce that we have arranged a special agreement with one of our lenders and we are able to honor the new loan limits beginning in December 2017! From now, on until the end of the month and into the new year, you can apply for a conforming loan up to the new limit of $453,100. Get a jump start on the new loan limits with Indigo Mortgage! Visit us to learn more about how you can find the best rates and terms on your mortgage!

Published in Blog
Wednesday, 23 October 2013 16:35

97% Loans Going Away in November 2013

In less than a month, Fannie Mae is implementing a new mortgage guideline that requires a larger minimum down payment. Come November 16th, the maximum LTV ratio for purchase loans by Fannie Mae will fall from 97% to 95%. In other words, you’ll need to come up with a 5% down payment if you want to go the conventional route.

Currently Fannie Mae only requires 3% down. This is a big deal as borrowers who wish to put the smallest amount down possible will now have to utilize the FHA 3.5% down program.

The difference between a conventional loan with Mortgage Insurance and an FHA loan with mortgage insurance is the fact that MI can be cancelled on a conventional loan when the loan reaches less than 80% loan to value but the MI on an FHA loan stays for the life of the loan. Also an FHA loan requires a one-time up front mortgage premium of 1.75% of the loan amount. The FHA loan of today is much more expensive for borrowers than in years past. I encourage borrowers who are considering the 3% down payment option from Fannie Mae to move on it before the November 15th deadline. Loans must be registered and locked by November 15th but can be closed after that date. Remember, the VA offers 0 down for veterans up to $417,000.

Here’s a quick look at what rates are doing: on conventional loans the 30 year is right about 4.25% and the 15 year is about 3.375%. FHA and VA rates are about 3.75% for a 30 year and a 15 year is right about 3.25%. Rates are headed in the right direction, so anybody that has been waiting for rates to drop again, now is the time to take another look.

Published in Blog