Episode 37: Listen Up Homebuyers – Loan Limits Rise for 2023

Episode Summary

What is a conforming loan? Why are Fannie Mae & Freddie Mac raising the loan limits in early 2023? Ramez Fahmy with Caliber Home Loans answers these questions and more about the changing market conditions.

Episode Notes

Mortgage giants Fannie Mae and Freddie Mac raise loan limits for 2023 Meet Ramez Fahmy a mortgage lender with Caliber Home Loans. He explains what is happening in the housing market in December 2022 and what is in store for 2023.

Victoria Ray Henderson is the owner & broker of HomeBuyer Brokerage serving Washington DC, Maryland & Virginia

:49 Who are Freddie Mac and Fannie Mae

1:00 They are the largest purchaser of mortgages in the country

1:20 largest purchasers of mortgages in the country

2:04 What is a conforming or conventional Loan?

2:24 Home Ready and Home Possible are programs available for home buyers

3:00 Why are Fannie Mae and Freddie Mac raising the loan limits?

3:47 conforming loans have gone up to $726,200

4:07 High-cost areas have higher loan limits 150% higher than other areas

4:24 DC Metro area high balance loans are available up to 1 million 89 thousand dollar loan meaning you could do this with only 5% down payment

4:45 What are the risks for a home buyer?

5:10 important to consult with a mortgage professional to know what you are comfortable spending for a monthly mortgage. Not just what you qualify for but what you are comfortable with each month

6:20 Be forthcoming with the lender regarding your monthly costs

7: 24 How do you see the raising of the loan limits impacting the market?

8:08 Biggest increase seen in a long time percentage wise

8:30 Have a frank conversation with a lender who can talk you through this process

8:51 Portfolio loans

9:35 Seeing more private loans in this market like adjustable rate mortgage programs

10:00 30-year fixed mortgages have been the norm but more buyers are considering ARMS and other options

10:27 What Chairman Powell said yesterday

10:55 downturn in mortgage rates

11:15 adjustable rate mortgages are often done with the intent to refinance in the next 12 -24 months

11:43 Sensational headlines don’t always match what is actually happening in the market

12:15 Reacting to headlines-avoid the herd mentality

12:50 Market conditions today as compared to a year ago

13:33 rates are higher today than a year ago but many buyers are using a temporary buy down

14:51 Meet with a lender and develop your plan of action

Learn how to navigate these market conditions

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