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United Wholesale Mortgage and Guaranteed Rates now offer loans of up to $750,000 as if meeting Fannie Mae and Freddie Mac conforming loan limits ahead of expected limit increases next year. It is the latest lender to announce it will set prices for mortgages.
Rocket Mortgage was the first lender to jump into regulation by Fannie and Freddie’s federal regulator, the Federal Housing Finance Agency (FHFA). The Federal Housing Finance Agency (FHFA) is expected to announce next month that the 2024 conforming loan limit will increase from the 2023 threshold of $726,200 per loan. Most unit properties in the country.
Rocket announced on October 2 that its wholesale channel, Rocket Pro TPO, will qualify loans of up to $750,000 for one-unit properties in the lower 48 states, and up to $1,125,000 in Alaska and Hawaii. announced.
This assumes FHFA’s seasonally adjusted expanded data. house price index The Nov. 28 announcement shows house prices have increased by at least 3.3% over the year.
“We’re very happy with that $750,000 number,” Rocket Pro TPO EVP Mike Fawaz told Inman at the time. He said Rocket will hold loans in excess of the current conforming loan limit until the new loan limit takes effect on January 1.
The head start on the increase is welcome news for borrowers who had to take out giant mortgages that were too big for Fannie and Freddie to buy. Jumbo mortgages tend to have stricter underwriting and higher down payment requirements, and many borrowers these days may have to pay higher interest rates on jumbo mortgages than they would with a conforming loan. .
With a $750,000 loan, a homebuyer who makes a 10 percent down payment can buy a home worth up to about $830,000 without having to cover closing costs.
After Rocket stepped in, Guaranteed Rate followed suit, announcing an “expanded loan amount matching program” on October 9th.
“There are some rules about who can take out this loan and what kind of housing it can be used for,” says Guaranteed Rate. announcement Said. “You must purchase a one-unit home to use as your primary residence. And you must also meet minimum credit requirements.”
UWM on Wednesday announced higher expected limits for conventional and VA loans, and announced that loans of up to $750,000 on one-unit properties will be treated as conforming. A UWM spokesperson told Inman that the updated conforming loan limits are also available for one-unit VA mortgages and conventional loans for up to four-unit homes.
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