My preferred mortgage professional Elvin Wesley recently sent this information regarding mortgage insurance (MI) – this is good to know for all buyers or future buyers:
Great news, buyers no longer must wait until they have 20% down to purchase a home and get a mortgage loan without Mortgage Insurance (MI)! If they meet the following guidelines, they will have NO Mortgage Insurance on Conventional Conforming & High Balance fixed rate loans (doesn’t apply to FHA loans and some JUMBO products offer 90% LTV loans with no MI)!
This news allows buyers to use the payments that would be going to monthly MI to shift that over to qualifying for a higher purchase price, which is great in this market to have more purchase power. Also, for buyers who recently purchased a home in the last few years that may not yet have 20% equity in their home, they too can refinance if they have 89.99% loan to value and they meet the same requirements below; we can refinance them and get rid of that MI!
The Federal Housing Finance Agency (FHFA) announced in late 2021 the new conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2022, which are effective January 1, 2022.
New limits are as follows for San Diego County:
Conforming is now $647,200
Super Conforming/ High Balance for “high cost” areas is now:
$879,750 – 1-unit SFR
$1,126,250 – 2-units duplex
$1,361,350 – 3-units triplex
$1,691,850 – 4-units 4 plex
$970,800 is the new 1-unit SFR loan limit for Orange and LA counties.
Loan amounts higher than the loan amounts/limits shown above will be considered JUMBO financing.
This is great and can save buyers money. If you have further questions please contact Elvin Wesley at Ranch and Coast Mortgage: email@example.com 760-580-1733.