The 2010 Conforming Loan Limits

A conforming mortgage is one that, quite literally, conforms to the mortgage guidelines set forth by Fannie Mae or Freddie Mac.

Each year, the government sets the maximum allowable loan size for a conforming mortgage, based on "typical" housing costs nationwide. 

Loans in excess of this amount are typically called "jumbo".

While home prices increased from 1980 to 2006, so did conforming loan limits.  Since then, however, as home prices have dipped, the conforming loan limit has held.

Now, in 2010, for the 5th consecutive year, the government set $417,000 as the nation's conforming mortgage loan limit.

The 2010 conforming loan limits, as released by the government, are:

• 1-unit properties : $417,000
  
• 2-unit properties : $533,850
  
• 3-unit properties : $645,300
  
• 4-unit properties : $801,950

But conforming loan limits don't apply to all U.S. geographies equally.  As a result of various economic stimuli since 2008, the government now considers certain regions around the country "high-cost" areas.  In these areas, conforming loan limits can range to $729,750.

There are less than 200 such areas nationwide.  The complete list is published on the Fannie Mae website.

Housing Starts Are Down And Why It's Terrific News For Sellers

A "Housing Start" is a home on which construction has started and, for the 4th straight month, national single-family housing starts held steady last month. 

When the demand for homes grows faster than the number of homes for sale, prices increase. 

As recent home sales data confirms, buyers currently outpace sellers and one consequence of this is an increase in multiple-offer situations this year. 

It's no wonder home prices are up across so many neighborhoods.

October's Housing Starts report is yet another piece of housing data foreshadowing rising home prices into 2010.

Building Permits were also down in October, a potential demand-to-supply imbalance magnifier. Without permits, there's no future construction. This drains supply. Meanwhile, tax breaks and low rates tend to stimulate demand and, right now, we've got both. 

Therefore, so long as demand remains semi-constant into the New Year, expect home prices to rise. 

In many markets, they already are.

Simple Real Estate Definitions : APR

Arizona Home Buyer Solutions™

The Arizona Home Buyer Solutions™ Program provides up to 2.5% as a gift to be used for a Down Payment. This program is ideal for low to moderate income individuals and families looking to obtain qualify affordable housing with only 1% down. And the better news is-the 1% down payment can be from a family member, employer or union!

The Arizona Home Buyer Solutions™ Program is offered exclusively through The Lending Company, a direct endorsed U.S. Housing and Urban Development lender.

The program provides up to a 2.5% gift for home buyers utilizing an FHA 1st mortgage. The seller can contribute up to 6% for closing costs/pre-paid expenses and the program offers expanded income limits based on county. It also provides competitive interest rates, flexible loan approval guidelines and is not restricted to just 1st time home buyers.

Virtually any H.U.D. Approved Home qualifies for this program including 1 to 4 family homes and approved condominiums. The Home must be owner occupied for this program. The Arizona Home Buyer Solutions™ Program is available statewide in Arizona to qualified home buyers. FHA Loans require a minimum 3.5% down payment. The program provides up to 2.5% as a gift to be used towards the FHA down payment requirement. Ask your representative for details.

The Lending Company is an Equal Opportunity Lender. David Ghai is a Certified Mortgage Planner and Branch Manager for The Lending Company's Gelndale, AZ Branch Office.

The Lending Company-BK0909441 Arizona

7075 W. Bell Road, Suite 12

Glendale, AZ 85308

623-878-0021

22% Purchase Money Assistance Program

Last week marked the start of an exciting new purchase assistance program for Arizona Residents purchasing residential real estate for primary residence occupancy. The new program provides 22% in purchase money assistance in the form of a deferred second mortgage with no interest and no payments. The loan is forgivable after 5, 10 or 15 years depending on the original loan amount and occupancy. The program is designed specifically for vacant bank owned foreclosures. The selling bank must be willing to sell the property for at least 5% below appraised value and the property must meet minimum inspection requirements.