“We Cannot Direct The Wind But We Can Adjust The Sail.”
Effective October 1, 2011, Fannie Mae and Freddie Mac lowered their conforming loan limits, going back to 2008 levels. So what does that mean? Many buyers suddenly need a jumbo loan to qualify for the home they want. Making sure that your buyer has a good knowledgable mortgage broker to guide them.
What makes a “JUMBO MORTGAGE” jumbo? If the loan amount exceeds the maximum set by Fannie Mae and Freddie Mac, then the loan is deemed “nonconforming ” or “jumbo”. For the highest-cost areas of the country, the maximum was $729,750 until October 1. But now, it has been lowered to $625,000. Moody’s analytics estimates that the highest-cost areas that will be most impacted by this change are in the Northeast, but some parts of Florida and Chicago areas will be affected as well.