W the of year


The Mortgage Coach


inter is here, full force.


Morning


frost blankets my yard and all the rooſt ops. T e trees


bare their branches and I have rake my piece of America, making it great again. It is time to focus on goals and map out the 2019 game plan. In lending, winter, is one of the slower time of


the


business cy- cle. Winter is


time that


Lending Guidelines Standards are set, outlining conform- ing loans.


Fannie Mae Loan VISUALIZE


limits are set each year, and our thriving economy is once again giving rise to higher lim- its. Fannie Mae was created dur- ing the Great Depression in 1938, adding liquidity to the banks and freeing up funds to help homeowners and build- ers grow the economy. T is created Mortgage Back Securi- ties (MBS) sold on the second- ary market. T is expanded access to funds not achievable using local Savings and Loans - much like the classic movie “It’s a Wonderful Life”. Fannie Mae went public in 1968 and two years later Fred- die Mac was created. T ese


originators will be able to qual- Ignore the annual percentage rate when shopping for a mortgage. ~ Suze Orman


Guidelines for 2019 by Barry O'Meara of Santa Rosa, CA • barryo@stearns.com


two mortgage giants estab- lished the basic guidelines for Conforming Loans.


Part of


this conforming platform was to establish loan-size limits. Since 1980, when the con- forming limit was $93,750, the conform- ing loan limit has consistently gone up each year.


In 2006,


$417,000 was set as the maxi- mum loan limit and it stayed that amount until 2016. If you are not


familiar with “lo an-sizes” - conforming loans are un-


derwritten through an Auto- mated Underwriting System (AUS). Basically, this is a pro- gram that crunches numbers and determines if you are a good credit risk. Fannie Mae uses Desktop Underwriter (DU) and Freddie Mac uses Loan Prospector (LP).


ify buyers more easily. T is is a big jump from last year’s high balance limit of $648,600. Jumbo loans, are loan amounts greater than the High Balance limits. T ese loans are under- written per the guidelines set by the investor. Oſt en these investors add additional con- ditions that make these loans diffi cult to close. T ese loans have stricter ratios and these ratios oſt en makes timely es- crow closings more challeng- ing.


T e new conforming loan


limit nationwide is $484,350, up from last years $453,100. Being able to get higher loan amount originated as a con- forming loan will help more buyer qualify with less over- lays. Meaning if your income is consistent and easily verifi ed and you keep your credit rat- ing in good standing, you can get your purchase fi nancing or re-fi nancing done with whole lot less stress. If your goals for 2019 include


Both


analyze your credit score, loan-to-value, property type and loan purpose. If you meet the guidelines set by either of these loan programs, your loan will be approved. T e essential point is less overlays, and quicker approvals. High Balance loans extend that con- forming limit to a higher loan amount. T e High Balance conforming limit in Sonoma County is $704,950.


Loan


purchasing a home, it’s time to set your sights on which loan works for your future. Know before you owe and fi nd out which loan you qualify for. Sometimes it takes a village to buy a home, so co-borrowers or tenants-in-common could be a solution to making a home aff ordable.


It is time to focus


on goals and resolve to make 2019 the most memorable year - by achieving homeownership in beautiful Sonoma County.


Happy New Year!


California’s Hard Money Lender since 1988. Call Today If Interested: (707) 523-2099. See recent offerings on our website: www.SunPacificMortgage.com


Upbeat Times in Kyoto, Japan!


Hi Paul, we visited my nephew and his family with sister


Margaret in Takatsuki Japan. Upbeat times at the Yasaka Jinja Shinto shrine in Kyoto Japan December 2017. ~ Jim Jensen of Santa Rosa & Chico


ABOUT: YASAKA JINJA ...See page page 30, bottom left


A California Corporation CA Bur RE License #01464899; NMLS License #360993 UPBEAT TIMES, INC. • January 2019 • 25


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