Jumbo-Conforming loans for co-ops
Hi, As some of you already know, the 417k limit on conforming loans has recently been increased to 729k in high-priced areas. This means a loan of 729k is no longer considered Jumbo, thereby lowering the rate to that of (or near) a traditional conforming rate. As of today, co-ops are not eligible for this,…
Hi, As some of you already know, the 417k limit on conforming loans has recently been increased to 729k in high-priced areas. This means a loan of 729k is no longer considered Jumbo, thereby lowering the rate to that of (or near) a traditional conforming rate. As of today, co-ops are not eligible for this, and are held to the previous rules of anything above 417k being considered Jumbo.
I’ve heard conflicting things from mortgage brokers and banks about this, so I’m wondering if anyone has had experience with this as of yet. One broker told me that this will become available for co-ops this months, others have said it’s already available from some banks (I have no proof yet), and others have said it’s not happening at all. Does anyone have any more insight? The Jumbo rates are about 1 point higher right now, so it’s a significant savings. Thanks.
FNMA will start purchasing Coop Loans and loans for 2 Family residences utilizing the new Expanded Loan amounts on Monday June 30th under the new expanded guidelines that restrict certain types of refinace loans. $729,750 provided the coop qualifies.
I can send you the Fannie Mae release on Monday.
Your property would qualify for a FHA loan at that loan amount, whose limits were also raised temporarily by the Stimulus Package. Also, not good for coops.
Call me if care to discuss.
Lance
718-238-7222 ext 11
Nothing more than a single-family?
Not according to the OFHEO website:
http://www.ofheo.gov/newsroom.aspx?ID=418&q1=0&q2=0
It states:
“Washington, DC – The Office of Federal Housing Enterprise Oversight (OFHEO) today released the maximum conforming loan limits that will be in effect through year-end as a result of The Economic Stimulus Act of 2008. That legislation permits Fannie Mae and Freddie Mac to raise their conforming loan limits in certain high-cost areas. …. The maximum for temporary jumbo conforming loan limits, which apply to loans originated in the period between July 1, 2007 and December 31, 2008, are as high as $729,750 for one-unit homes in the continental United States. TWO, THREE AND FOUR-UNIT HOMES HAVE HIGHER LIMITS AS WELL.” (My emphasis added).
The PDF from that website with the actual rates is here:
http://www.ofheo.gov/media/hpi/AREA_LIST.pdf
And contains these numbers for NYC Metro area:
NY New York-Northern New Jersey-Long Island, NY-NJ-PA (Metropolitan Area)
Component Counties (NY): Bronx, Kings, Nassua, New York, Putnam, Queens, Richmond, Rockland, Suffolk,
Westchester
1-Unit: $ 729,750
2-Unit: $ 934,200
3-Unit: $1,129,250
4-Unit: $1,403,400
I have a 3-unit townouse in Gowanus and am looking to refi at the new conforming rate. If I read thesee numbers correctly, as long as my loan amount is under $1.129M, I’m solid.
Am I missing something? This seems pretty clear to me.
The Expanded Conforming Loan amounts are not good for Coops or any property more then a single family residence. There are no plans on the horizon to change this. In fact, these new loan amounts are only good until the end of the year unless they are renewed by Congress.
Also, the new limits are not priced the same as the old limits. A Jumbo loan for a coop is running about 1.5% higher then a $417,000 loan amount, currently.
The new loan limits were poisoned by constraining restrictions, sorry to say. Our government hard at work!
The Expanded Conforming Loan amounts are not good for Coops or any property more then a single family residence. There are no plans on the horizon to change this. In fact, these new loan amounts are only good until the end of the year unless they are renewed by Congress.
Also, the new limits are not prices the same as the old limits. A Jumbo loan for a coop is running about 1.5% higher then a $417,000 loan amount, currently.
The new loan limits were poisoned by constraining restrictions, sorry to say. Our government hard at work!
we have been asking around and found no banks we spoke to were offering the so-called conforming jumbo loans at the same rate as regular conforming loans. hsbc is charging normal jumbo rates for anything over the original limit that is a single family occupancy, they raised the limit a bit on two-family and multiple-families but if you are buying an apt you are basically still in the same boat as before the legislation. sorry.