Conforming loan limit increased

FHFA Announces Increase in Maximum Conforming Loan Limits for Fannie Mae and Freddie Mac in 2017

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2017 will increase.  In most of the country, the 2017 maximum loan limit for one-unit properties will be $424,100, an increase from $417,000.  This will be the first increase in the baseline loan limit since 2006.  In higher-cost areas, higher loan limits will be in effect. 

The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price.  However, after a period of declining home prices, HERA also made clear that the baseline loan limit could not rise again until the average U.S. home price returned to its pre-decline level.  Until this year, the average U.S. home price remained below the level achieved in the third quarter of 2007 and thus the baseline loan limit had not been increased. 

Earlier today FHFA published its third quarter 2016 House Price Index (HPI), which makes clear that average home prices are now above their level in the third quarter of 2007.  The expanded-data HPI value for the third quarter of 2016 was roughly 1.7 percent above the value for the third quarter of 2007, and thus the baseline loan limit will increase by that percentage.

100% gift fund program

Time to file your homestead exemption

Homestead Exemption:

Following are very important homestead exemption information.  I hope that the information I provide is useful. I am proving links to homestead exemption info per county. Most of Metro Atlanta counties are listed. If any of the web links are broken due to county website updates, please contact me and I will help you track down the proper websites and updated links.

What is homestead and what is needed to apply?

Homestead is a property tax reduction program, intended to keep taxes lower on owner-occupied homes.

In order to receive homestead exemption, you must present proof of ownership, complete a homestead application and provide the social security number of all owners. You must be listed as the owner on county tax records.

Who qualifies?

Those who own and occupy the property as their primary residence as of January 1 of the year for which application is made.

When should you apply?

You must apply by April 1 with most counties (please check with your specific county for particular deadlines) to receive credit on the current year tax bill. Applications received after April 1 will be processed for the following year.

Are there any special homestead exemptions?

Yes, for blind, disabled or paraplegic veterans, senior citizens and some people in military service. If all owners do not occupy the property, a partial homestead exemption may be given.

How often must I file?

Once, unless a form is mailed to you by the Assessor. If you receive an application, it is important that you complete it and return it to the address on the form.

Where can I file?

You should receive an application in the mail by February 1. If you do not receive an application in the mail, contact your county tax commissioner’s office or online for an application and any additional questions.

   

Cobb County:
Property tax Info search: Cobb County Tax Bill Search
Homestead Exemption: Cobb County Homestead Exemption Forms
 

Cherokee County:
Property tax Info search: Cherokee County Tax Bill Search     
Homestead Exemption: Cherokee County Homestead Exemption
 

Clayton County:
Property tax Info search: Clayton County Tax Bill Search    
Homestead: Clayton County Homestead Exemption Forms  
 

Dekalb County:
Property tax Info search: Dekalb County Tax Bill Search    
Homestead: Dekalb County Homestead Exemption Forms  

Fulton County:
Property tax Info search: Fulton County Tax Bill Search    
Homestead: Fulton County Homestead Exemption Forms 


Forsyth County;
Property tax Info search: Forsyth County Tax Bill Search    
Homestead: Forsyth County Homestead Exemption Forms
 

Gwinnett County;
Property tax Info search: Gwinnett County Tax Bill Search
Homestead: Gwinnett County Homestead Exemption Forms
 

Hall County;
Property tax Info search: Hall County Tax Bill Search
Homestead: Hall County Homestead Exemption Forms

Please feel free to contact me if you need further assistance.

3% down payment Conventional Loan

Guideline changes make it easier to qualify

Fannie Mae has implemented several changes to their underwriting guidelines which makes it easier for borrowers to qualify. Some of the highlights:

1.    Revolving Debt: If borrower is paying off a revolving debt (credit card), the borrower also had to close the account in order to exclude that payment from the debt-to-income ratio (DTI). Going forward, revolving accounts that are paid down to zero at closing may remain open and no monthly payment needs to be included in the DTI ratio.

2.    Conversion of Principal Residence Requirements: If a borrower is retaining their current primary residence and converting it to an investment property (while buying another primary residence) and wants to use any rental income from the property for qualifying, you are no longer required to have 30% equity in the property. 

3.    Stocks, Bonds, and Mutual Funds: One hundred percent (100%) of the value of the asset is allowed when determining available reserves. If the borrower documents that the value of the asset is at least 20% more than the funds needed for the borrower’s down payment and closing costs, no documentation of liquidation is required.

4.    Funds to close: This is not a new change but just a reminder: For primary residence: all funds for closing (down payment, closing cost, prepaids, reserves) can be gift funds. Borrower is not required to make any contribution from their own funds. This is helpful when borrower does not have savings of their own.  Many still think that at least 5% must come from borrower's own funds.


If you have any questions or would like to learn about additional changes giving borrower’s more flexibility when qualifying, please let me know.