1- Change in FHA Loan Limits – County loan limits for FHA loans will be going back to their 2008 levels and most counties will suffer reductions. The changes will be for all property types. The single family limits will be $379,500 for the Philadelphia area including Chester County, Delaware County, Montgomery County, Berks and Bucks County, as well as New Castle County, Delaware. The limits remain proportionately higher for 2-4 unit properties. For individual county information, please contact me. If you have a loan where you need to use the current loan limit, the file must be registered by August 31st.
2- USDA Change in Fee Structure – There will be a change going into effect for USDA loan applications dated on or after September 1st. Moving forward, the Up-Front Guarantee Fee will be reduced from 3.50% to 2.00%. In addition, a monthly fee will be required in the amount of .30% of the loan amount. Loans in the pipeline with the current fee structure must fund no later than September 30th.
3- M&T Jumbo Mortgage Products – Don’t let the pending decrease in Agency Jumbo loan limits hold you back. M&T offers two products that may provide a solution – the Treasury Jumbo and the Premium Jumbo. Use the Treasury Jumbo for the Purchase and Rate/Term Refinance of Owner-Occupied 1 unit properties (including approved condos & co-ops); Use the Premium Jumbo for 1-2 Unit (no condos or co-ops) Owner-Occupied Purchase, Rate/Term or Cashout Refi’s to 80% LTV, or for the Purchase or Rate/Term Refinance of 3-4 Unit Owner-Occupied or 1 Unit Second Homes. Both programs are available for loan amounts to $1 million or more.
4- New Conventional 20 Year Pricing Grid – Due to the increased interest in shorter mortgage terms, we have created a separate pricing grid for the 20 Year Conventional Fixed Rate product, rather than offer as an adjustment to the 30 Year. This also allows us to price more aggressively to meet your consumer demand for these loans. If you use a pricing engine, be sure to make your vendor aware of the change so that they can make any necessary adjustments.
For more information, contact me at 610-609-1096 or email Kevin.firstname.lastname@example.org