CHM Blog

As reported by the Federal Housing Finance Agency:

FHFA Announces Conforming Loan Limits for 2021:                                                                    

Fannie Mae and Freddie Mac Baseline Limit Will Increase to $548,250

FOR IMMEDIATE RELEASE
11/24/2020

??Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2021.  In most of the U.S., the 2021 maximum conforming loan limit (CLL) for one-unit properties will be $548,250, an increase from $510,400 in 2020. 

Baseline limit

The Housing and Economic Recovery Act (HERA) requires that the baseline CLL be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.  Earlier today, FHFA published its third quarter 2020 FHFA House Price Index® (FHFA HPI®) report, which includes estimates for the increase in the average U.S. home value over the last four quarters.  According to the seasonally adjusted, expanded-data FHFA HPI, house prices increased 7.42 percent, on average, between the third quarters of 2019 and 2020.  Therefore, the baseline maximum CLL it in 2021 will increase by the same percentage. 

High-cost area limits

For areas in which 115 percent of the local median home value exceeds the baseline CLL, the maximum loan limit will be higher than the baseline loan limit.  HERA establishes the maximum loan limit in those areas as a multiple of the area median home value, while setting a “ceiling" on that limit of 150 percent of the baseline loan limit.  Median home values generally increased in high-cost areas in 2020, driving up the maximum loan limits in many areas.  The new ceiling loan limit for one-unit properties in most high-cost areas will be $822,375 — or 150 percent of $548,250. 

Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands.  In these areas, the baseline loan limit will be $822,375 for one-unit properties.

As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum CLL will be higher in 2021 in all but 18 counties or county equivalents in the U.S.   

Questions about the 2021 CLLs can be addressed to LoanLimitQuestions@fhfa.gov and more information is available at https://www.fhfa.gov/CLLs.

Other Resources

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Posted in:General
Posted by Richard Sardella MLO.100007700/NMLS 233568 on November 24th, 2020 3:22 PM
Posted in:General
Posted by Richard Sardella MLO.100007700/NMLS 233568 on July 17th, 2019 6:00 PM
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The fact is Colorado Home Mortgages has the same technology opportunities including Fannie Mae Day 1 Certainty for a faster loan process and many scenarios offering property inspection waivers often with a lower interest rate and/or lower closing costs than national lenders.  Combined with a local office, direct relationships with your neighborhood Realtors and one person contact through the entire process, including joining you at closing for your largest financial asset / obligation.  Sound better?

Trust our Colorado family team of professionals to assist your family by calling today!  

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End the paper chase

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No need for appraisals on eligible refinances and purchases

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Posted in:General
Posted by Richard Sardella MLO.100007700/NMLS 233568 on June 26th, 2018 2:56 PM
Posted in:General
Posted by Richard Sardella MLO.100007700/NMLS 233568 on June 25th, 2018 11:27 AM

As reported on FHAinfo@HUD.GOV:

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2017-07, which immediately suspends Mortgagee Letter 2017-01, Reduction of FHA Annual Mortgage Insurance Premiums (MIP) Rates, until further notice.

 

Posted in:General
Posted by Richard Sardella MLO.100007700/NMLS 233568 on January 20th, 2017 1:38 PM

    

Know Before You Owe: Making the mortgage process easier for you

By

Know Before You Owe: Making the mortgage process easier for you

Since opening our doors over four years ago we’ve heard from homebuyers that the process of buying a home is overwhelming and confusing. We’ve heard that closing is often rushed, not allowing enough time to review before signing on the dotted line. For consumers who apply for most mortgages on or after October 3, 2015, the stress of shopping for a mortgage will be reduced, as our new mortgage disclosure rule takes effect. The new rule and disclosures ease the process of taking out a mortgage, helping you save money, and ensuring you know before you owe.

Here’s what will change:

  • Four overlapping disclosure forms will be streamlined into two forms, the Loan Estimate and the Closing Disclosure.
  • You’ll have more time to review your closing documents. Currently, lenders must give you your HUD-1 Settlement Statement disclosure 24 hours in advance, if you request it; after October 3, you’ll receive your Closing Disclosure three business days before you sign the forms and accept the terms of your mortgage, no request needed.

Here’s how these changes will improve the mortgage process:

  • The new forms will make it easier to understand complicated mortgage terms.
  • The Loan Estimate makes it easier to shop around and compare loan offers from multiple lenders. Consider applying for loans from at least three lenders before choosing a mortgage so you can find the best deal for you.
  • The three days required between getting your Closing Disclosure and signing on the dotted line allow you to make sure there aren’t major changes from the deal you were offered on your Loan Estimate. It also gives you time to ask your lender all the questions you might have about the terms of your mortgage and consult with a lawyer or housing counselor.

More resources to help make mortgages understandable

We’ve released “Your Home Loan Toolkit.” The toolkit has worksheets and conversation starters to help you at key points in the mortgage process. You’ll receive the toolkit when you apply for a home purchase mortgage. However, you can also download it now.

In addition, while these forms make the process of taking out a mortgage easier, we have also created digital resources to help you use and understand your Loan Estimate and Closing Disclosure. These tools give you definitions of terms like “balloon payments” and “points.” They also show you where to look, page-by-page, to check that terms and numbers on both documents match up.

For a better understanding of what it takes to get a mortgage, we’ve updated our “Owning a Home” site with an overview of the mortgage process. This step-by-step guide to getting a mortgage takes you from creating a budget to filing away your important closing documents after you accept the terms and sign on the dotted line. “Owning a Home” also has tools and resources to help you learn more about your loan options, make decisions, and prepare for closing.

Housing counselors approved by the U.S. Department of Housing and Urban Development (HUD) are another great resource. They can offer independent advice about whether a particular set of mortgage loan terms is a good fit based on your objectives and circumstances, often at little or no cost to you. To find a housing counselor near you, use our search tool.

The new forms work

Over the past four years, we’ve done extensive work, including testing the new forms with consumers around the country and getting feedback from industry. In our testing, we determined that these new forms helped people better understand the terms and types of mortgages in the market.

From our very first day as an agency, we’ve been working hard to improve your experience when it comes to purchasing and paying for your home. We’ve been working to make the market safer by educating mortgage consumers, challenging practices that are illegal under federal consumer protection law, and by enacting new mortgage lending rules. In addition, we’ve worked to get responses to your mortgage complaints, and we’re exploring ways to further improve the closing experience.

You have the right to compare offers and understand the terms before you sign on the dotted line. And the information you use should be clear and easy to understand. After four years of work, these new forms and tools will help you shop for the best deal and avoid costly surprises when you sign on the dotted line.

The mortgage process is easier when you know before you owe. 

Posted in:General
Posted by Richard Sardella MLO.100007700/NMLS 233568 on October 5th, 2015 10:22 AM

Colorado Home Mortgages is proud to be a recipient of a Gold Star from BBB Denver/Boulder for 2014, as our fourth consecutive year.

Posted in:General
Posted by Richard Sardella MLO.100007700/NMLS 233568 on April 2nd, 2014 8:39 AM

CHM and our mortgage insurance partner will now allow a buyer's minimum 5% down payment beginning in January 2014 to be obtained from an eligible gift.  This will provide buyers a conventional mortgage insurance option to FHA allowing many buyers the flexibility of a lower down payment with less expensive mortgage insurance costs.

Posted in:General
Posted by Richard Sardella MLO.100007700/NMLS 233568 on August 14th, 2013 8:42 AM

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