Jumbo Mortgage Lending in High-Cost Areas

The US Government via the Economic Stimulus Act of 2008 in an effort to aid mortgage lenders in servicing more borrowers living in the high-cost areas are now authorized to offer Jumbo Agency Mortgages.

The Fannie Mae Conforming Loan Limits in the High-Cost areas are now $453,100 for a single family home.

The Fannie Mae Jumbo Agency Loan or the FHA Jumbo Agency Mortgage requirements have been expanded to a maximum loan in the High-Cost areas to $679,650 for a single family home. These are for Fannie Mae, Freddie Mac and FHA Jumbo Agency Loans. The maximum loan amount is defined by the county on the HUD Website

These loan limits are variable, based upon the geographical area. See more information

All of the programs available are Fully Documented and have a maximum Debt –to-Income of 45% unless DU/LP allow for expanded ratios. These are available on both the 30 Year and 15 Year Fully Amortizing. Sometimes, with compensating factors an approval may be received with a 50% DTI.

Under the Dodd-Frank Act, CFPB has instituted the Qualified Mortgage. Under QM most DTIs will be capped at 43% DTI.

We will purchase mortgages secured by properties not located in designated high-cost areas with original loan amounts up to the following limits:

Number of Units	Maximum base conforming loan limits for properties NOT in Alaska, Hawaii, Guam & U.S. Virgin Islands		Maximum base conforming loan limits for properties in Alaska, Hawaii, Guam & U.S. Virgin Islands
2018	2017	2018	2017	2018
1	$453,100	$424,100	$679,650	$636,150
2	$580,150	$543,000	$870,225	$814,500
3	$701,250	$656,350	$1,051,875	$984,525
4	$871,450	$815,650	$1,307,175	$1,223,475

For super conforming mortgages secured by properties located in designated high-cost areas, we will purchase mortgages with original loan amounts up to the following limits:

Number of Units	Maximum base conforming loan limits for properties NOT in Alaska, Hawaii, Guam & U.S. Virgin Islands		Maximum base conforming loan limits for properties in Alaska, Hawaii, Guam & U.S. Virgin Islands
2018	2017	2018	2017	2018
1	$679,650	$636,150	$1,019,475	$1,221,750
2	$870,225	$814,500	$1,305,325	$1,221,750
3	$1,051,875	$984,525	$1,577,800	$1,476,775
4	$1,307,175	$1,223,475	$1,960,750	$1,835,200

We’ll update the Freddie Mac Single-Family Seller/Servicer Guide in December to reflect the 2018 loan limits.

Benefits to Borrower

Interest Rates similar to or competitive with Conforming Loans to $424,150
Wide range of jumbo-conforming options
Established Jumbo Mortgage Rate environment.
Stable mortgage rates in many High-Cost real estate markets
Low down payment requirements (up to 90% LTV on Agency or up to 96.5% LTV on FHA)
Stabilize the higher cost mortgage market.

CALL FOR SPECIFIC DETAILS AND GUIDELINES.