Mortgage Rates

[evilnewbie]

Originally Posted by TwiloMike

FHA absolutely does jumbo. Ijn NYC and nearby areas, for example, FHA loans go up to the maximum $729,750. The Stimulus Package takes care of that... and that pricing is higher than old FHA (non-stimulus) pricing because it is higher risk.

Thats not a JUMBO loan anymore... congress made legislation increasing the loan amount... JUMBO in NYC is now OVER 729k... so no, it is NOT a JUMBO loan...

[TwiloMike]

Originally Posted by evilnewbie

Thats not a JUMBO loan anymore... congress made legislation increasing the loan amount... JUMBO in NYC is now OVER 729k... so no, it is NOT a JUMBO loan...

1- Conforming Jumbo (between $417,000 and $729,750 in highest risk areas) is still Jumbo, it's just Fannie purchasable.
2- Conforming Jumbo carries a Fannie pricing hit for... Jumbo (it's more risky).
3- FHA Stimulus (that same loan size category) also carries a pricing hit for additional risk from every lender I've surveyed.

Put it this way: there is no free money and $700K didn't just become equal in risk to $417K to lend.

[renriq02]

it seems anything over 362k is considered jumbo for FHA

Originally Posted by TwiloMike

1- Conforming Jumbo (between $417,000 and $729,750 in highest risk areas) is still Jumbo, it's just Fannie purchasable.
2- Conforming Jumbo carries a Fannie pricing hit for... Jumbo (it's more risky).
3- FHA Stimulus (that same loan size category) also carries a pricing hit for additional risk from every lender I've surveyed.

Put it this way: there is no free money and $700K didn't just become equal in risk to $417K to lend.

[TwiloMike]

Originally Posted by renriq02

it seems anything over 362k is considered jumbo for FHA

Yes, you are absolutely correct. I should have been clear on that (was thinking more principle than details).