2010 FHA Loan Limits for San Jose & Bay Area

Federal Housing Administration (FHA) today announced single-family loan limits for San Jose. These loan limits are effective for loans with credit approval issued on or after January 1, 2010 through December 31, 2010. One-Unit $ 729,750 Two-Unit $ 934,200 Three-Unit $ 1,129,250 Four-Unit $ 1,403,400 These loan limits are also available for the counties of Santa Clara, San Mateo, Alameda, Contra Costa and San Francisco. Home Equity Conversion Mortgages (Also called Reverse Mortgage) The national FHA loan limit for HECM in 2010 remains at $625,500 (150 percent of the national conforming limit). Complete…
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FHA waives 2nd appraisal requirement for Bay Area

Effective immediately, FHA has rescinded the second appraisal requirements for properties located in San Jose and rest of the Bay Area (Considered declining markets). For Bay area borrowers where loan amounts can generally exceed $417,000 2nd appraisal requirement was a problem on 2 counts:
  • Increased fees towards appraisal (2 appraisals hence double the fees)
  • Danger of loan getting declined or loan amount reduced if the value of the second appraisal came lower at the last moment
The 2nd problem was a bigger risk if the borrower had removed his/her appraisal or loan contingency. It could potentially result into loss of earnest money deposit. The new rule would make it easier for borrowers to bring in the minimum down payment of 3.5% even if the loan amount is >$417,000 and not worry about 2nd appraisal. Here are the highlights of the new rule:
  • For properties located in declining markets, FHA no longer requires second appraisal for loan amounts greater than $417,000 and LTVs greater than 95%.
  • Cash-out refinance transactions no longer require second appraisals for loan amounts greater than $417,000 and properties located in declining markets.
  • Effective for all FHA loans registered on or after Monday, November 30, 2009, some lenders may still require an appraisal from a lender-approved appraisal management company when any loan amount exceeds $417,000 and the property is located in a declining market. However, a second appraisal will no longer be required.
(more…)
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First Look by Fannie Mae – Great News for First Time Home Buyers in Bay Area

Fannie Mae announced a program called "First Look" which will help First Time Home Buyers compete with investors for foreclosed homes in San Jose and rest of the Bay Area. Under the program, dubbed First Look, Fannie plans to consider offers only from potential owner-occupants and certain public-housing entities during the first 15 days in which a foreclosed home is on the market. Many investors can move faster on home purchases because they are able to pay cash and don't have to wait to qualify for a loan and get an appraisal. If…
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San Jose Conforming & FHA Loan Limits extended through 2010

President Obama signed the congressional resolution extending through 2010 the current conforming loan limits of $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including San Jose. The counties of Santa Clara, Alameda, San Mateo, San Francisco & Contra Costa in the Bay Area will have the maximum loan amount at $729,750.Yesterday actions extends the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010. The floor for FHA is $271,050; the floor for Fannie Mae and Freddie Mac conforming loan limits is $417,000. "Home sales have shown…
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