U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-03-2012, 10:51 PM
 
217 posts, read 739,228 times
Reputation: 75

Advertisements

We were told that a $550K loan is considered a "high balance loan" through Fannie Mae and thus we would need at least 10% down. However, Rockland County of NY is a "high cost area" where the Fannie Mae website says the high balance loan limit is $625K. We don't understand what that $625K means? We thought it meant that because it was a high cost area anything up to $625 would not be considered a "high balance loan" and would be eligible for 5% down payment.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 07-03-2012, 11:43 PM
 
Location: Richardson, TX
11,711 posts, read 18,594,642 times
Reputation: 30331
A limit is a maximum, not a minimum.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-04-2012, 12:07 AM
 
217 posts, read 739,228 times
Reputation: 75
Quote:
Originally Posted by Debsi View Post
A limit is a maximum, not a minimum.
Thank you...

Can anyone else help me with my question?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-04-2012, 05:36 AM
 
Location: MID ATLANTIC
8,140 posts, read 19,989,830 times
Reputation: 9382
417K is your max loan with only 5% down for any Fannie/Freddie product – that has been one of our only constants in this crisis.

A little bit of history. Fannie’s max loan has always been at 417K and this max loan is still subject to change every year and the decision was based on median housing prices. So given our recent history, nationally, Fannie should have come down a couple times in the past few years. But the mortgage crisis required stability, so the quasi-government agency has held the conforming loan limit at 417K.

The other void has been the jumbo market, loans over 417K. Almost every national investor pulled out of the “jumbo” market. The government stepped in and mandated Fannie (and its sister organization Freddie) to provide financing for this void. These loans were called, Fannie Mae High Balance, while the traditional loans were continued to be called “conforming.” The max loan for high balance was originally 729K for certain high cost area. But the minimum down payment for loan amounts above 417K has always been 10%.

The conforming (loans 417K and below) and high balance loan limits are subject to change every year. In years past, these amounts were effective January 1st, however, we’ve seen some recent changes in the fall.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-04-2012, 08:22 AM
 
217 posts, read 739,228 times
Reputation: 75
Quote:
Originally Posted by SmartMoney View Post
417K is your max loan with only 5% down for any Fannie/Freddie product – that has been one of our only constants in this crisis.

A little bit of history. Fannie’s max loan has always been at 417K and this max loan is still subject to change every year and the decision was based on median housing prices. So given our recent history, nationally, Fannie should have come down a couple times in the past few years. But the mortgage crisis required stability, so the quasi-government agency has held the conforming loan limit at 417K.

The other void has been the jumbo market, loans over 417K. Almost every national investor pulled out of the “jumbo” market. The government stepped in and mandated Fannie (and its sister organization Freddie) to provide financing for this void. These loans were called, Fannie Mae High Balance, while the traditional loans were continued to be called “conforming.” The max loan for high balance was originally 729K for certain high cost area. But the minimum down payment for loan amounts above 417K has always been 10%.

The conforming (loans 417K and below) and high balance loan limits are subject to change every year. In years past, these amounts were effective January 1st, however, we’ve seen some recent changes in the fall.
Thanks for this response. This is what I was afraid of. We have nearly 10% but the closing costs on the $550K are approximately $26,500 which we do not have. The max 3% seller's concessions (assuming seller would do it) wouldn't cover the $26,500. This leaves me with FHA and early estimates have the MI nearly double ($520+) over the conventional's PMI.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-04-2012, 11:35 AM
 
1,785 posts, read 3,129,681 times
Reputation: 1278
Your closing costs (as a buyer) are $26,500 ?? How?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-04-2012, 01:49 PM
 
217 posts, read 739,228 times
Reputation: 75
Quote:
Originally Posted by snowdenscold View Post
Your closing costs (as a buyer) are $26,500 ?? How?
From what I am told by multiple sources, the closing costs in NY are typically 4.8% of the purchase price. This includes the 10-12 months of taxes that are ~$14K and the mortgage record tax is much higher.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-04-2012, 02:40 PM
 
1,785 posts, read 3,129,681 times
Reputation: 1278
Oh, so that includes pre-payment of property taxes and insurance? I think of those as different than true 'closing' since you'd have to pay them yearly anyway, you're just doing up-front. But yeah, gotta have the cash for it. Anyway, I was thinking your lender fees + title fees + recording fees were $26k, which would be crazy.

Though speaking of crazy, looks like Rockland County increases the property tax rate from 1.52 to 2.07 (!) for 2012. That's a pretty drastic bump. Though that should put your taxes at 11.4K, not 14K. Still sucks. As does your high mortgage recording tax.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-04-2012, 02:46 PM
 
217 posts, read 739,228 times
Reputation: 75
The taxes WILL decrease? They were 13,500K in 2011 and should be $14K or so in 2012.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-04-2012, 02:59 PM
 
1,785 posts, read 3,129,681 times
Reputation: 1278
I'm not really sure how the exact values come out - I was looking at:

Rockland County's Property Taxes

Quote:

Fiscal Year Tax Levy Full Value County Tax Rate
2003 Adopted $42,348,000 $29,112,479,511 $1.4546
2004 Adopted $45,498,710 $32,713,388,432 $1.3908
2005 Adopted $46,749,900 $35,295,501,267 $1.3245
2006 Adopted $46,253,000 $39,549,592,471 $1.1695
2007 Adopted $46,253,000 $44,779,409,312 $1.0329
2008 Adopted $53,801,924 $48,274,170,415 $1.1145
2009 Adopted $59,100,000 $45,960,460,550 $1.2859
2010 Adopted $60,500,000 $44,279,778,760 $1.3663
2011 Adopted $61,700,000 $40,661,902,957 $1.5174
2012 Proposed $81,059,855 $39,243,176,471 $2.0655
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top