New Conforming Loan Limits for 2010: The Federal Housing Finance Agency (FHFA) announced that the “new” conforming loan limit for 2010 will remain at $417,000 for most areas in the U.S for 5 straight years. Loan limits for high-cost areas, including California, are capped at $625,500, down from the previous $729,750 limit. Loan limits for many areas of the state do not reach this lower threshold and are dramatically reduced from 2008.
The $729,750 limit for some areas stipulated in the Economic Stimulus Act of 2008 signed in February was extended through 2010.. Loan amounts above the conforming limits up to $729,750 are denoted as agency jumbo or high balance conforming by some mortgage lenders. The rates for agency jumbo are slightly higher than the conforming rates, but much lower than the conventional jumbo rates offered by the individual banks. The agency jumbo limit for the Honolulu market is $793,750.
FHA Loan Limits
The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan, increasing the monthly payment and negatively impacting affordability for households in California.
In California, the new conforming loan limits for metropolitan areas range from $474,950 in the Sacramento Arden Arcade Roseville metropolitan area, covering El Dorado, Placer, Sacramento and Yolo counties; to $625,500 in the Los Angeles-Long Beach-Santa Ana metropolitan area.
The new conforming limit for Honolulu County is
$721,050 and $626,750 for Maui county. It is expected that Hawaii real estate market will benefit from the higher conforming loan limits.
To find out the
new conforming loan limit of your area, you can use the tool on the right by entering the zip code.
DU Re-Fi Plus: If your home loan is owned by Fannie Mae and the loan acmount is $417,000 or less, you may be qualified for Fannie Mae sponsored DU Re-Fi Plus - here is how to look up if your loan is owned by Fannie Mae. Under this program, you can borrow up to 105% of the value of the home. Your loan cannot qualify if you currently have mortgage insruanc on your property.
100% Financing For VA Loans: It is still possible for veterans or active duty military personnel to purchase a home without down payment as long as the buyer's income can qualify. The VA funding Fee that VA charge to guarantee the loan can also be financed. Beware that VA would not allow certain closing costs, however VA will allow up to 4% of seller concession to pay for these costs. Please call the Office for details. VA loan is assumable so long as the new buyer can qualify for the loan.
VA Loan Streamline Refinance: VA offers a streamline refinance program for VA Loan holders who are seeking to benefit from lower interest rates. Under this program, many documentation such as income documentation or appraisal are not needed making this process extremely easy. Loan agent is allowed to earn up to 1% of the loan amount.
USDA Rural Development Loans: This is another government guaranteed loan program that many people are unaware of. USDA restricts the loans only to buyers who earn up to certain amount and to properties located within the designated rural areas. Properties located in the majority of areas in Maui, Big Island and in the entire island of Kauai are qualified. Properties outside of Honolulu and Waipahu on the island Oahu are also qualified. If qualified, buyers can borrows up to 102% of the purchase price. Please call the Office to find out whether your buyers or the property can qualify for this loan.
