In Massachusetts, like many other parts of the country, the FHA and conforming loan limits were just increased. The standard Fannie Mae loan was anything under $417,000 prior to this change.
Anything over $417,000 was considered a "Jumbo" loan. Jumbo loans typically carry a higher interest rate. By increasing the loan limits is makes it easier for borrowers to get larger loans without a corresponding increase in the interest rate.
The changes will most likely take effect toward the end of this month. These new limits will be in effect for this year and could be revised again come next year.
In Middlesex and Norfolk County Massachusetts both the FHA and conforming loan limits have been raised to $523,500.
In Worcester County the FHA loan limit is $385,000 and the conforming loan limit remains at $417,000.
The loan limits in Worcester County did not change from the standard Fannie Mae guideline. Worcester County FHA limits, however, did increase by over $100,000.
* One very important thing to be aware of is that most of Worcester County is considered a declining market which increases the minimum required down payment from 5% to 10% on conventional loans. FHA is not effected by declining markets so there is no change to the minimum amount down, making an FHA loan an attractive option! The minimum down payment on an FHA loan is 3% regardless if the market is declining or not.
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The above information regarding Massachusetts FHA and conforming loan limits was provided by Bill Gassett, the team leader for the #4 RE/MAX Team in Massachusetts in 2007.
Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of Hopkinton Massachusetts and other Metrowest towns for the last 22 Years. Bill's office is conveniently located in the center of Hopkinton MA at 77 Main Street.
I have a passion for Real Estate and love to share my marketing expertise! I would welcome the opportunity to earn your business.
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I service the following towns in Metrowest MA: Hopkinton, Milford, Upton, Southboro, Westboro, Ashland, Holliston, Mendon, Hopedale, Medway, Grafton, Northbridge, Uxbridge, Douglas, and Framingham MA.
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#4 RE/MAX TEAM IN MA 2007 - Specializing in marketing homes & Real Estate in Metrowest Massachusetts. Based in Hopkinton, MA 01748 Have been one of the top 5 RE/MAX Teams in MA for the last 9 years.
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Certainly good news for those serious about buying property in your area.
Sally it should help a little bit but I would love to see the government step in and provide a tax incentive to 1st time home buyers. We need an influx of buyers to stimulate the Real Estate market.
Another great recommendation from a wonderful agent. Keep up the good work Bill!!!
PS. I like your customized visitor page. Very creative!!
Tracy thanks for your compliments...I really appreciate it.
Bill- Just a note. The Fannie loan increase goes into effect on April 1st on 30 year fixed and the arm pricing goes into effect may 1st. What i am being told by Fannie Mae, is there is no automated underwriting until may at the earliest. which means manual underwrite. AN actual underwriter need to make the approval. The max LTV is 90% on these. And that is up to individual banks if they want to lock rates before April 1st. for example i have a couple of lenders that will lock and few that won't. These deals Will take a little longer to get going. As usually nothing is simple.
Hi Chris thanks for adding your thoughts. At my RE/MAX company we have an inhouse affiliation with Wells Fargo. I am being told thet they will be able to do the loans with the new guidelines as of March 17th...Maybe it is different for different lenders when they can offer this as well?
Countrywide is rolling out next week loans cant close till april 1st.
Chris I realize they can't close until the 1st. According to Wells Fargo they will be able to start processing them on the 17th of March.
Bill- my misunderstanding, not trying to be difficult. After i responded i actually received an email from Countrywide stating they are going to start excepting these loans on Monday. I have Wells also and they have not issued anything on the wholesale side that i have seen. probably just rolling out to retail to start. Have you had any issues with declining market, every lender is treating them differently.
No problem Chris.
Bill....showing my age here. I remember when the FHA limits in the Springfield area was $70,000. I can't comprehend $523,500. This price range was for the rich and famous.
Kay it really is amazing how much things have changed. The mortgage arena right now is just crazy. It seems everyday there is something new.
Housing and loan stuff is nuts out here in So Cal! I practice in Oak Park, Agoura, Westlake area, and the the mid tier (are they calling it the conforming jumbo, or somethign) is up to aboug $735,000. But as it is considered a declining market, buyers still need a down payment, so it is still tough. Hey, who said real estate is easy?? :)
Bill, well this should help but now with the redlining going on in CA by the PMI groups it makes it quite difficult for some of the home buyers. Thank heavens these new programs are stepping in. Let's hope they stick around.
Gena - The mortgage market is just crazy right now. I had heard about the redlining. We are starting to see the same thing just outside my area here in Massachusetts. I suspect these programs will remain in place for the long haul.