Archives for November 2013

Fannie Mae HomePath for Conforming High Balance Mortgages

EDITORS NOTE: Fannie Mae is no longer offering the FannieMae HomePath mortgage program. If you are considering buying a Fannie Mae HomePath property (foreclosure that is owned by Fannie Mae) in Washington state, I’m happy to help you.

Earlier this week, a real estate agent emailed me this question regarding Fannie Mae HomePath mortgages:

I have a client looking at a HomePath home in King County.  It’s listed at $470,000 and she wants to put down 5%.  Is that possible?  I had the impression that HomePath still has to conform to standards on loans and the limit would be 417,000.

Here’s my reply:

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2014 Conforming Loan Limits for Washington State

The Federal Housing Financing Agency (FHFA) who oversees Fannie Mae and Freddie Mac, confirmed that conforming loan limits will remain unchanged from 2013 to 2014. This is great news as a few weeks ago, officials were indicating that we could see conforming loan limits reduced in early 2014. This means that a single family 1-unit residence in the greater Seattle area has a conforming loan limit of $506,000. Loan amounts above conforming limits are considered “jumbo” or non-conforming.

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What May Impact Mortgage Rates this Week: November 25, 2013

mortgageporter-economyWe have a very short week. The holidays are pretty much here! Our office will be closed to observe the Thanksgiving holiday on Thursday and Friday. Mortgage Master Service Corporation will reopen for business as usual on Monday, December 2, 2013.

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When an Appraisal Comes in Low: Seattle Real Estate Chat

In the last episode of Seattle Real Estate Chat, Jim Reppond and I discuss what happens when an appraisal comes in low for a home purchase. Since appraised values are based on comps (recently closed homes), the data used to determine an appraised value is often “lagging” behind current home prices. Factor in bidding wars when prices may be escalated along with HVCC (regulations that do not allow lenders to select appraisers) and it’s not entirely uncommon to have an appraisal come in lower than the offer price.

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What may impact mortgage rates this week: November 18, 2013

mortgageporter-economyLast week mortgage interest rates improved thanks to Janet Yellen indicating at her confirmation hearing that as our next Fed head, she will continue on with QE and support the Fed’s actions of buying mortgage backed  securities to keep mortgage interest rates artificially low. This was sweet news to the markets and we’re still seeing lower mortgage rates this morning.

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How much income do you need to buy a home in Seattle?

Young Couple With New HouseAn article (hat tip to Julie Hall) caught my eye in my Facebook stream regarding how much income a household needs in order to be able to buy a home in various metropolitan cities. According to New York Smash, if you’re going to buy a home in Seattle, you’re going to need an annual income of at least $63,145.41.  There’s more to just how much income one makes when it comes to determining “how much” home someone can qualify for. The article does not mention how much down payment a person will need. Let’s run some figures to see just how much income one needs to buy a home in Seattle.

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Seattle Real Estate Chat: Mold, Asbestos and Lead – Oh My! [Video]

This week’s episode of Seattle RE Chat featured a special guest, James Mallory, President of Environix. James shared a lot of important information about mold, asbestos and lead, all of which can be potentially be found in Seattle area homes.

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Fannie Mae HomePath Minimum Down increased to 5%

This weekend, Fannie Mae will be updating DU (Desktop Underwriter) to reflect the new higher minimum down payment requirements. I’ve written about that here.

This new underwriting guideline will also impact Fannie Mae HomePath mortgages, bringing the minimum down payment from 3% for owner occupied purchases to 5% down.

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