According to the FHFA News Release  11/28/2017

FHFA Announces Maximum Conforming Loan Limits For 2018 

Fannie Mae and Freddie Mac Baseline Limit Will Increase to $453,100         

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Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018. In most of the U.S., the 2018 maximum conforming loan limit for one-unit properties will be $453,100, an increase from $424,100 in 2017. 

Baseline limit

The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.  Earlier today, FHFA published its third quarter 2017 House Price Index (HPI) report, which includes estimates for the increase in the average U.S. home value over the last four quarters.  According to FHFA's seasonally adjusted, expanded-data HPI, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017.  Therefore, the baseline maximum conforming loan limit in 2018 will increase by the same percentage. 

High-cost area limits

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit the maximum loan limit will be higher than the baseline loan limit.  HERA establishes the maximum loan limit in those areas as a multiple of the area median home value, while setting a "ceiling" on that limit of 150 percent of the baseline loan limit.  Median home values generally increased in high-cost areas in 2017, driving up the maximum loan limits in many areas.  The new ceiling loan limit for one-unit properties in most high-cost areas will be $679,650 — or 150 percent of $453,100. 

Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands.  In these areas, the baseline loan limit will be $679,650 for one-unit properties, but loan limits may be higher in some specific locations.

As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2018 in all but 71 counties or county equivalents in the U.S.   

Questions about the 2018 conforming loan limits can be addressed to LoanLimitQuestions@fhfa.gov.

 

Please call me and let's begin the home buying process today!

Kim Duclos 702-521-3939

www.callkim.net

 

 

HAVE YOU BEEN CONFUSED WITH ALL OF THE ANRONYMS USED in TODAY'S WORLD?

...especially in our world of texting and computers

 lol, byw...it can be overwhelming. 

To help when it comes to real estate I have listed a few

of the most common when going through the loan process.

As always, please call with your real estate questions!

702.521.3939

Kim Duclos Realtor® CRS GRI ABR
Elite Realty
8625 S. Eastern Ave.
Las Vegas, NV  89123

(702) 521-3939 cell / duclos24@aol.com   Follow, Friend or Link me: Search Kim Duclos

FHA General Guidelines for Appraisals

FHA General Guidelines for Appraisal  

*******POWER AND WATER MUST BE ON AT TIME OF INSPECTION****

• Earthquake straps AKA (Seismic Straps)
• Missing handrails-Need to be Replaced
• Cracked or damaged exit doors that are otherwise operable
• Cracked window glass
• Defective paint surfaces (Peeling Paint)
• Minor plumbing leaks (such as leaky faucets)
• Defective floor finish or covering (worn through the finish, badly soiled carpeting)
• Rotten or worn out counter tops
• Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed post-1978
• Trip hazards (cracked or partially heaving sidewalks, poorly installed carpeting)
• Crawl space with debris and trash
• Smoke alarms
• The electrical box should not have any frayed or exposed wires.
• All habitable rooms must have a functioning heat source
• The roofing must keep moisture out.
• The roofing must be expected to last for at least two more years.
• The appraiser must inspect the attic for evidence of possible roof problems.
• The roof cannot have more than three layers of roofing.
• If the inspection reveals the need for roof repairs and the roof already has three or more layers of roofing, the FHA requires a new roof.
• Door between the garage and the home must be fireproof.

Property Access
The property must provide safe and adequate access for pedestrians and vehicles, and the street must have an all-weather surface so that emergency vehicles can access the property under any weather conditions.

Structural Soundness
Any defective structural conditions and any other conditions that could lead to future structural damage must be remedied before the property can be sold. These include defective construction, excessive dampness, leakage, decay, termite damage and continuing settlement.

Asbestos
If an area of the home contains asbestos that appears to be damaged or deteriorating, the FHA requires further inspection by an asbestos professional.

Bathrooms
The home must have a toilet, sink and shower. (This might sound silly, but you'd be surprised what people will take with them when they're foreclosed on.)

Appliances

FHA requires properties to have working kitchen appliances, particularly a working stove. However, FHA documents do not mention any requirements regarding appliances.

 

Swimming Pools

Swimming pools must be operational to provide Contributory Value. The appraiser must report readily observable defects in a non-covered pool that would render the pool inoperable or unusable. If the pool water contains algae and is aesthetically unappealing, The appraiser must require that pools with unstable sides or structural issues be repaired or permanently filled in accordance with local guidelines, and the surrounding land re-graded if necessary.

 

 

Converted Garage-Non-permitted additions

Often non-permitted additions and remodels are not finished to code. Not only may FHA require that these items be brought to code, but if FHA decides to approve the loan without that requirement, FHA will not consider the value of non-permitted items in its appraisal

 

The FHA does not require the repair of cosmetic or minor defects, deferred maintenance and normal wear if they do not affect the safety, security or soundness.

Call Kim with your real estate 

questions and concerns!

                         Kim 702.521.3939

Those Who Wait Will Pay Thousands More This Spring

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big. Here are a few reasons why: On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly. It is important to note that in order to be eligible for the lower cost up-front mortgage insurance, a lender has to order a case number from the FHA before April 5th. A case number can only be generated for loan applications where a property is involved and a fully executed purchase contract exists. Home buyers who have been pre-approved but are not under contract will not be eligible for the reduced premium effective April 5th. Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000. There is only one way to avoid being affected by all of these costly changes that lie ahead – submit all FHA mortgage applications by the last week of March.

If I can answer any questions you may have about how these changes could impact you, call me.

Kim Duclos @ (702) 521-3939 or toll free @ (888) 949-2890

kim.duclos@coldwellbanker.com