Updates for the New Year

Every year the agencies update their lending limits, based on the prior year’s housing activity.

We’re hearing from Fannie Mae and Freddie Mac that the conforming loan limit remains at $417,000. Loans below this amount get the best pricing and guidelines for purchase and refinance loans.

For veterans wanting to use their no-down loan benefit, the cap remains at $417,000 for 2015. VA loans are available at higher loan amounts, but a down payment is required.

The cap for using FHA financing for purchase and refinance loans in Kern County stays at $271,250. If you want to do a reverse mortgage, your loan limit is $625,500.

These are all based on single-family transactions, so if you are buying a duplex, triplex or quad your loan limits increase. Anything five units or more is considered commercial financing.

Too, remember that FHA loans closed on or after January 21, 2015 get to use the new closing/payoff rules that save consumers money.

And, if your short sale is more than four years old, you may now qualify for a conforming loan (the prior wait time was seven years).

Best wishes to all of us for a robust housing market and continuing great interest rates in the coming year!

Tammy Engel is your local Mortgage Advisor, and has been working for your best interest since 1990. Contact her at 661/822-7325 for purchase, refinance, and reverse mortgage.