Newmortgage products in 2018

In the new year of 2018 we are seeing new home loan products that will greatly benefit borrowers. This is the best sign in a long time, and way overdue. The mortgage world is finally creating more user-friendly procedure for homeowners. Raise your glass!

Every year we see minor changes in Fannie Mae, Freddie Mac and Jumbo Loan underwriting. But the 2018 changes are more significant, beginning with the category of condominium approvals for primary and second-home purchases. That bothersome and time-consuming questionnaire from the respective condo association will no longer be required. This is important because these questionnaires often point out Fannie Mae violations, such as a project having more then 50 percent rentals, daily rentals and other elements that can prohibit a straightforward approval for a 30-year fixed-rate mortgage. Good news! No longer will condo buyers have to resort to an adjustable mortgage due to factors occurring in the condo project that are beyond their control.As of January 2018 the Fannie Mae loan limit for all loan products such as the 30-year, the 15year, and adjustable loans was increased to a maximum of $453,100. This was a welcome small increase from the previous limit of $424,100

One of the most influential and in my view, spectacular and somewhat exclusive new products, implemented in March 2018, increases the ceiling of the 30-year fixed-rate loan for primary and secondary residences. For certain lenders the limit is increased to $679,650. Fantastic! Very few lenders have this special product. Look hard. Not only do you get a Fannie Mae price, which is better than the jumbo pricing, but you get Fannie Mae underwriting: totally simplified compared to jumbo underwriting.

Could we be headed for more changes in the home mortgage world that will benefit homeowners? This is a real possibility. Changes in disclosures and waiting periods for mortgage approvals would be welcome and justified. We even hear talk that some of the provisions of the Dodd Frank bill will be changed on a national level. Improvements to assist prospective homeowners in financing their residences are needed badly and appear to be headed our direction.

Jim Gay was a real-estate broker for 20 years and has been a financial consultant to Fortune 500 companies. He is currently a broker/owner atThe Mortgage Place, inc. (505-986-9080) and can be reached at jim@jimgayhomemortgage.com.