Tag Archives: home mortgages

Real Estate

Banks Stop Accepting Certain Mortgage Applications

 

In anticipation of the expiration of current loan limits on Sept. 30, 2011, Bank of America has decided to stop accepting conventional and government applications for loan amounts that will exceed the permanent loan amounts.  The deadline to submit loan applications was July 1.

According to an email from Bank of America, conventional loans that exceed the permanent loan limits will now be required to use non-conforming programs.

Barring Congressional action, the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum.  The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee.  Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.

 

 

Thinking of buying or selling?
For all your real estate needs, call or email:

John J. O’Dell Realtor®
Real Estate Broker
O’Dell Realty
9530) 263-1091
jodell@nevadacounty.com

Real Estate

42,000 of California Jobless will Get Help with Mortgages

The U.S. Treasury Dept. announced yesterday it is providing additional funding to a California program to help homeowners struggling to make their mortgage payments due to unemployment.  The program, administered through the California Housing Finance Agency (CalHFA) will assist struggling borrowers make up to six months of mortgage payments.  Lenders will be asked to match the government contribution.

  • The program aims to help 19,000 unemployed borrowers in California between its November launch and next July.  An additional 23,000 borrowers will receive help over the next two years, according to CalHFA estimates.
  • To qualify for the program, borrowers must be unemployed and eligible for unemployment benefits, and live in the home tied to the mortgage.  Borrowers must be fewer than 90 days behind on mortgage payments and meet low- and moderate-income guidelines.  Income requirements can be found at http://keepyourhomecalifornia.com/income.pdf.
  • CalHFA is focusing on providing aid to unemployed borrowers struggling with purchase loans, excluding refinanced loans.  According to CalHFA officials, it is too difficult to decide who “cashed out for a good reason and who didn’t.”
  • More information about the CalHFA program, including eligibility, program summary, income requirements, and frequently asked questions, can be found at http://keepyourhomecalifornia.com.

To read the full story, please click here.