STEPHEN THAGGARD: Jumbo Loan Program Allows Qualified Buyers to Put Just 5 Percent Down
By Stephen Thaggard, Sales Manager of Embrace Home Loans // February 19, 2018
SALES MANAGER OF EMBRACE HOME LOANS
SPACE COAST DAILY TV: Space Coast Daily was live with Stephen Thaggard, Sales Manager of Embrace Home Loans in the Viera, Florida office. Thaggard shares a program for homebuyers (or homeowners) to consider that can help provide the funds needed to repair and rebuild so we can all get back on our feet, and it’s the Fannie Mae HomeStyle Renovation Loan.
Fannie Mae Has Increased the Loan Limit in Brevard County to $453,100
BREVARD COUNTY • VIERA, FLORIDA – In 2017 we experienced a gradual increase in home prices making it even more cumbersome for Brevard County buyers who are trying to save for that very important purchase. This happens with a growing economy and there doesn’t seem to be any indication that home prices will decline or level-off in 2018.
In fact, friends of mine at the McCoy Freeman Group in Cocoa Beach believe the momentum in home prices will continue throughout next year.
I want to share some refreshing news regarding mortgage financing options including larger “jumbo” sized mortgages. There are low down payment options available and Fannie Mae, FHA and VA are lending a hand as well. It’s going to be a great year to purchase a new home.
First let’s update everyone on the new loan limits announced for Conventional, VA and FHA mortgages. Fannie Mae increased the loan limit in Brevard County to $453,100. That would allow an eligible buyer to put as little as 3 percent down payment on a $467,000 purchase and obtain a Conventional Fannie Mae loan. The VA has since followed and will now allow an eligible Veteran to borrow up to $453,100 with no down payment.
FHA has a lower limit but we saw an increase and allows financing up to $294,515. So a buyer seeking an FHA loan can purchase a home at $304,800 and place as little as 3.5 percent of the purchase price towards down payment. It feels good knowing that mortgage limits are moving up to help compensate for slightly higher home prices.
This will help more buyers purchase homes in 2018. But what about larger homes that come with even higher prices you might ask? It’s ok. Embrace talks Jumbo!
A Jumbo mortgage is one that exceeds the “conforming loan limits” set by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. These limits represent the loans the GSEs are willing to purchase from approved mortgage sellers. In Brevard County, like most of the country, the conforming loan limit as mentioned above for 2018 is $453,100 for a single-family home.
We have many Jumbo loan programs so I will touch on a few of my favorites. Most Jumbo programs require a 20 percent down payment, and that’s great, but let’s focus on lower down payment options.
Embrace Home Loans offers a Jumbo program that allows a qualified buyer to put as little as 5 percent towards down payment, with no mortgage insurance requirement, and is a true 30-year fixed rate loan with no prepayment penalty. And we can finance up to $2,500,000.
We also have Jumbo loan programs that can help buyers with lower credit scores, or to help finance non-warrantable condominiums, which are condos that fall short of Fannie Mae guidelines.
Everyone knows my specialty is financing eligible Veterans with their VA loans and we can finance a Jumbo VA loan with a small down payment. For example, a purchase price of $650,000 for an eligible Veteran would require a down payment of only $49,225. As you can see, there are many approaches to Jumbo financing with less than 20 percent down payment.
Our Brevard County economy is growing stronger every day and home prices are reflecting the same strength and should continue to increase as we move into 2018.
Home buyers can take advantage of the new loan limits as well as the numerous programs available to assist with lower down payment options when looking to purchase their new home. If you have any questions, please reach out to us anytime and we hope this information sheds a positive light on the new year for our Brevard County Realtors, builders, and of course, new home buyers.
Have a safe and Happy New Year!
ABOUT THE AUTHOR
Stephen Thaggard is the Sales Manager of Embrace Home Loans in the Viera, Florida office. He has worked in the mortgage industry for the last 21 years and focuses on assisting builders, Realtors and home buyers with Florida mortgage options and solutions. Thaggard, a member of the Embrace Home Loan President’s Club since 2014, is also a member of FAMP – Florida Association of Mortgage Professionals and MBA – Mortgage Bankers Association.
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