2022 FHA and Conventional Loan Increases: Mortgage Limit Increases 2022

A mortgage lender goes over the 2022 mortgage limit amounts that have recently increased from 2021. Todd and Oana interview Mark Baker, a mortgage broker in Las Vegas and go over the conventional and FHA limit increases for 2022.

Uh hey everybody welcome to talk about houses as you know i’m todd i’m juana and i’m mark baker mark baker so we are going to do a special video series it’s going to air over a few months and we’re going to answer your loan questions and so the way we’re going to do it is we’re going to do a whole series of videos with mark just talking about basic loan stuff stuff

You would need to help you make a good decision buying your house or whatever and then uh so this will be a whole series now mark is of course is a lender in las vegas and we’re going to put all his information on the screen we’re going to put it in the video comments so if you ever want to reach out to him you’ll have you know if you want questions specifically

About loans you’ll just be able to reach directly out to mark he’ll be able to answer those questions for you uh so today we’re going to start with the simple one the what i think is kind of simple is the loan limits because they did they were they changed right the loan limits right uh fannie mae the federal housing i can’t think of what the name of it is off

The top of my head right now fannie and freddie just changed their loan limits to 647 250 from 548 and change so what is it what kind of loan is that for so that’s for any conventional loan so you’ve got jenny mays then you’ve got fannie and freddie so lp which is loan prospector that is freddie mac okay and fannie mae are both the same loan limits they always

Have been well they haven’t always been they have been for the last many many years since most of us been around the business right that went from five weeks went up almost a hundred thousand dollars that’s the people your typical conventional loan and that’s is that twenty percent down ten percent down you can do it with as little as three percent down if you’re

A first time home buyer you haven’t owned a home in three years it’s typically a five percent down so a 95 it goes anywhere from whatever loan to value all the way up to 97 depending upon the circumstances okay because it used to be like a long time ago conventional was like kind of 20 down years ago pretty much had to do that but now it’s there’s more options

That’s right then the federal housing administration come out it’s a great question actually the federal housing administration fha came out years ago for the purpose of i think was right after the great depression if i remember it i needed to go back and buff up on it but the whole idea was people had to put 20 down to buy a house and a lot of people couldn’t so

The federal housing administration came out fha is really just an insurance it’s a federal government insurance right it allows people to get into a house with little down and much more lenient um loan guidelines lower fico scores uh better rates higher mortgage insurance at times because that’s what guarantees the loan okay so so they’re higher risk absolutely

They don’t have they don’t have a good credit they don’t have as much absolutely income maybe and then they don’t have as much money to put down absolutely so the fha has a program to get these people to buy a house and then they insure it and everything okay so we’ll start with the so the conventional limits change from like five five forty eight and change five

Forty eight two fifty i think to six forty seven two fifty or six forty seven two hundred that’s quite a bit in the air it’s like a hundred thousand bucks they went up a hundred thousand right now that’s mainly because the real estate market changed right the correct prices have gone up is that now that’s just here in nevada is that all over the country how’s

That nationwide are there exemptions for areas like say san francisco or that are really high cost loan places uh new york city san francisco they’re they’re all over the country and and they have higher conforming loan limits that’s true so but the basic standard nationwide in and everything that affects nevada is the 647 200 okay and then the fha limit rose from

Like 362 and change to 420 um 420 i wrote it down on my little cheat sheet here because i always look at it from 420 680. that’s quite a bit i mean that’s like 60 000. enough so for a three and a half percent borrower three and a half percent down borrower that’s that’s significant and with the appreciation in real estate here in las vegas it’s uh that’s a deal

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Change so it’s probably the same house from a year or two ago because that’s what it’s worth now they can still buy the same house they just yeah but remember just a few years ago um they raised the fha loan limit because i remember we were doing it for judges and attorneys and doctors we were doing fha loans for i don’t know 450 or something it was big and then

They took it back down that’s right after the recession that was right after right after that i remember that they dropped it because it had gone up because of inflated values that’s right so we were doing reo’s during that time and we weren’t we were on the seller side so we weren’t having to deal with the lender as much we did have to talk to lenders but we did

Notice that that when the prices tanked and that they scaled back that and it was a lot of problems because people are using that loan program to get into homes they probably wouldn’t have been able that’s exactly right that’s exactly right because you don’t really like fha is for um it’s not for just someone to benefit from the government helping them it’s meant

For people who it’s they’re trying to promote housing to people that may not normally be able to get it and if it’s the fha limit can buy 80 percent of all houses in the market which they could have probably 2011 then you know you’re just telling you know doctor or somebody hey we just you can just get an fha loan because actually i got an fha loan on like a three

Hundred and something thousand dollar house i bought it i bought it home with an fha loan back then for a lot i mean it was it was substantial because it was easy it was a easy program well and he lost money down right at that time there were a lot of people that have money that were putting money into other things because everything was depressed right so to buy

A home you you know i personally didn’t want to put a big chunk down i’d rather keep my powder dry for other investments okay so let’s say if home but they don’t it’s not every year they go up they usually adjust it sometimes they go down sometimes they go up sometimes they like three or four years and then they have a big job yeah and it always happens around this

Time of year thanksgiving to christmas is when it every year that’s when everything comes out so if somebody let’s say somebody today now is that based on when they originate the loan or when it closes it’s based on when the for fha is case numbers pulled so that starts january 1st okay somebody came in today and wanted an fha loan with the new fha loan limits

Nobody can do it because you can’t pull a case number until january 1st oh okay so what if here’s a question we’re it’s the so it’s the middle of december right now what if somebody says says i really want to buy a house and they find the house and they go under contract does that mean they just have to wait two weeks to like start the loan process technically on

An fha loan okay but they could do it i mean they could go out today we’ve got one right now that just happened so they’re under contract but they’re like we’re going to wait you’re not going to pull the paperwork and then that’s when the whole process because there’s a whole other video about like the process for for the buyer like whatever to expect we’ll do

A whole other video on that great question what real questions what questions you have about mark about limits because the limits are like somebody could be watching this in florida and but those are the limits pretty much if you’re in tallahassee that’s probably limits that’s right by the limits not sure it’s a great question so now have these limits um kept

Pace with real estate values close to dollar for for a dollar or or where are they as far as that goes that’s a tough question to answer i don’t i would not i wouldn’t want to tackle that one that’s a tough question okay in theory right when the when the real estate markets appreciate right we’re we’re looking at values now i mean you guys are in real estate

Businesses you know more than i do but values now are at all-time highs all-time highs uh back in 2006 when we were you know doing loans that you know if you could fog a mirror we could do a loan for you 100 and people were knocking our doors down saying you know give me loans give me loans i think that we’ve already made all that back up but and so now here

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Are our fannie and freddie loan limits are at all time highs if that makes sense so in theory it should follow the price appreciation in theory i remember we had one year a few years ago that there was a pretty big agent here in town who called me and he was very upset that the loan limits went down when values were going up so there’s really i mean that’s all

Federal government he’s probably working with buyers mainly yeah that’s exactly right yeah okay i just said dude you’re shooting the messenger here i mean this is the federal government that determines the loan limits right it’s not me these are government sponsored enterprises fannie and freddie so it’s a great question so now these loan limits have have gone

Up have the requirements to uh secure these loans changed meaning have they changed the credit scores or the debt to income ratio or anything else besides the these limits well you guys came loaded from in general in general like is there anything obvious or is it pretty much just they it’s the same thing they just raised their value the guidelines don’t really

Change so most loans today are run through an automated underwriting system aus okay so that’s the lp and the dui was talking about lp is his loan prospector for freddie mac du is desktop underwriter for fannie mae okay all of our fha loans and va loans which are ginnie mae securities right i keep uh i keep up on my desktop as you can see mortgage-backed securities

Because and we’ll talk about that a while about about rates but all those loan programs go through every loan we take we have to put it on a piece of paper we have to run it through an automated system and there’s many many many tricks to get loans done that so one lender can get a loan done another lender can’t i don’t know that that’s totally totally true one

Lender knows a few tricks that the other lender might not know does that make sense yeah so the guidelines are loosening up some now they were unbelievably tight the pendulum swung really far richard lee and i talked had a long discussion about that once on video and they they raised a lot of lenders were not taking fha loans with less than a 640 fico score

Now we’re doing fha loans down to 580 uh that’s a lot of people that’s a lot of people between i mean that’s it’s like a bell curve and that’s like kind of in the middle there’s a lot that’s probably you know could be twenty percent of the people are between there we’ve closed one not too long with a 540 something fico score it was enough down payments oh so if

You don’t have have enough if you have more down payment you can have worse credit score that’s right so that three and a half percent is based on the that’s right that’s the highest so there’s one of our tricks of the trade that uh other lenders hopefully somebody might catch up on this you can take a loan that you can’t get through the system at three and a

Half percent down ninety six point five percent loan to value okay and you can’t get it through and can’t get it through and can’t get it through and can’t get through and your borrower’s really upset and they want to buy a house and they came to me and we said well could you put another one and a half percent down and do a 95 percent loan five percent down and

We can get that loan through the system the other lender never thought to change that because it’s an fha loan oh they just automatically locked renault see i didn’t know that i didn’t know they were different i thought it was just three and a half and we had that one that i was talking about i mean they had really bad fico scores obviously and that some they had

Some seriously derogatory credit but nothing within the last 12 months okay we and they had money they had access to money so we said could you put 20 down and they said well yeah we could but we just need to know what to do to get our credit up because we really need to buy a house soon well we hadn’t put 20 down the fha loan went through the system so we’re

Good they have mortgage insurance at 20 down and they’ll have it for the life of the loan but they own home does that make sense absolutely so there’s a lot of tricks that you can do we’ve seen them that will trigger at 25 down on an fha loan believe it or not 25 down wow but they can get a house okay and before they couldn’t yeah but would it if they have 25 down

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Aren’t they better off doing conventional or no not with a five something fico four oh you’re right okay so there’s a there’s a limp there okay last question what if it’s a super high end like a million like they want to like because people who buy these multi-million dollar houses they don’t just pay cash for them they do get loans right so that is non-conforming

And how does that work with is that just not insured by fannie and freddie or how does that correct those are there’s probably 15 investors nationwide that buy jumbo loans okay all jumbo loans are manually underwritten okay so um these are just some other investors that’s a whole different ball game that’s right do you do those we do so if somebody so basically no

Matter whether they’re buying buying a small house or a mansion you can it’s just something you can help them that’s what we do okay last question from me oh okay so we talked about fha and conventional let’s talk really briefly about va uh va changed their uh their rules not now but but a little while back to the sky’s the limit they did find it yeah they did um

So you just have to incorporate that right yeah you have to income qualifying right through the du system it’s got an lp it’s got to run through it again so so there are so the va loan limits mirror fannie freddie so it’s the 647 200 right now that’s the va loan limit anything over that is considered a va jumbo loan what we used to do gosh it’s been i don’t know

A couple years now where you had to put down uh if i remember right 25 of the vig between that loan limit so if you borrowed a million bucks and the the va loan limit was 500 you had to put 20 down if i remember right or twenty-five percent of the five hundred like a hundred hundred twenty-five yeah i put a percentage of that down i forget what the numbers were

Now because we do so many va loans just i just forget about it now the va came out and said we will guarantee a hundred percent of it period up to whatever the lender feels comfortable with is my understanding so there are lenders that are going to two million dollars at a hundred percent financing va that’s but if you’re in parts of seattle or san diego or san

Francisco or new york and you’re a veteran mm-hmm then you’re an active military or active duty military then that’s kind of you need that because you can’t get anything in san francisco proper for under i don’t think under a million anything and you probably can’t get anything in the whole bay area under six seven hundred grand even even like in oakland or

You know east bay or something like that certainly san diego like coronado you could forget it loma you could probably forget it too and you have a lot of navy people there and stuff absolutely and we do a lot of va loans so the va loan is it’s you wanna you bring up a really good point that’s it’s an unbelievable loan program it really is and it’s the best loan

Program out there there’s no mortgage insurance yeah you do have a va funding fee unless you have a service related disability but other than that we should we probably do a whole video on the va loans yes okay so this is um the first video of of many hopefully um we are going to put all of mark’s information on the screen you just reach out to him directly

Just send him an email call him he’s super responsive he wanna i’ll ask him questions like when we have a deal happen and she’ll like be hey what’s this how’s this and he always responds really quickly uh thanks for thanks for coming on your first one thanks for tuning in please subscribe notification bell like the video share it with your friends and comment

And if you have quite mortgage related you can put them in the comments too if you want right and if you found this valuable please make sure that you’re subscribing so you can see the rest of the videos mark has so much information you don’t want to miss this and please share it with your friends because this is information that really it’s very hard to come by

And we’re very appreciative that mark is sharing all this information with all of us all right see you guys in the next video bye

Transcribed from video
2022 FHA and Conventional Loan Increases: Mortgage Limit Increases 2022 By Talk About Houses