San Joaquin County 2018 loan limits have been released and increased for FHA and Conventional Conforming loans.
San Joaquin loan limits encompass Stockton, Lodi, Manteca, Lathrop and surrounding areas. At the end of every year the area median income and median home values are reviewed to determine a loan limit for the area. Over the past few years San Joaquin County has seen a steady increase in values and income which has translated into higher loan limits.
Loan limits are calculated and determined by the GSE’s (Government Sponsored Enterprise- FHA, Fannie Mae, and Freddie Mac). A loan limit is the maximum loan amount permitted under a specific program. If a borrower was looking to purchase a home priced beyond the limits they could put additional money down or acquire a non-conforming loan (jumbo loan).
FHA 2018 Loan Limit in San Joaquin County / FHA 2018 Loan Limit Stockton and Lodi
The largest limit increase year over year in San Joaquin County was FHA. The loan limits increased sharply up to $391,000. This would allow an FHA borrower to purchase a home for $405,000 with as little as 3.5% down. These loan limits are also used by first time home buyer programs like the GSFA platinum program and CALHFA.
Conventional 2018 Loan Limit for San Joaquin County
Conforming/ Conventional loan limits refer to a traditional mortgage that conforms to the guidelines set in place by Fannie Mae and Freddie Mac. At the increased 2018 loan limit of $453,100 a borrower could purchase a home of $467,000 with a mere 3% down.
With loan limits up and inventory increasing 2018 is looking like a great year for real estate and financing. When lending guidelines and options expand it provides borrowers who have been left on the sidelines an opportunity to jump in. I would love to help you make that jump
Work with an Inventive Lender
Working with a lender who will provide the proper options and explanations is crucial to your success. Call me at 209-474-7111 or contact me here to discuss a loan scenario, get an estimate, or simply ask a question. I’m here to help and I always return a call personally.
Stockton and Lodi is a market filled with self-employed borrowers that have been left out of the housing market due to unfair regulations. Prospective home buyers who fall outside that box – even ones with good credit and a sterling history of repayment – might have found it difficult to qualify for a loan. We at the Mortgage House Inc. have been looking for ways to service those that didn’t quite fit into the conforming loan box. I’m happy to announce we now offer several niche programs to fill that gap including bank statements for income and interest only options for loan amounts up to $3,000,000.
These new programs are some of the most innovative ways to put a self-employed borrower in a home. However the new products aren’t for everyone. These programs will tailor to those with strong credit (700 min) with a history of financial responsibility while using the monthly deposits to help determine income for the loan. These programs are critical of past credit events and restricts lending to those with negative credit events in the past five years (No charge offs, collections, or tax liens) and the bank statements shouldn’t reflect NSF charges or occurrences.
These programs are geared toward the purchase or refinance of an owner-occupied home. It’s Maximum allowable LTV (loan-to-value) for the program is 70% for purchase loans and 65% for refinances.
On the surface these programs may raise eyebrows, but they’ve been carefully tailored to focus on credit behavior, healthy equity positions and realistic income calculations. You may ask “why offer these loans”? Because as the ability to repay is proven by the credit history, sizable equity positions and income is based on a non-biased asset statement that’s not watered down through a self–employed borrower’s accountant.
With 65-70% Loan to Value the borrower has a vested interest in keeping the loan current and provides enough skin in the game to make these loan programs viable for the lender.
Feel free to contact me directly if you’re interested.
JUMBO Financing with No PMI – You better believe it!
The market is definitely shifting and prices are increasing which is why new programs are coming around to fill in the gaps. Jumbo mortgage guidelines had been overly invasive and difficult in the past but recently new investors have come into town to offer a better option.
At the moment we can provide financing on JUMBO mortgages without PMI (Private mortgage Insurance) with as little as 10% down with a 680 credit score. A few weeks ago I would have told you that were impossible, but things are changing rapidly. These new programs are reducing the reserves, credit score, loan to value, cash-out loan to value etc. If you were told no before you may want to give us a call to see if your situation now fits.
5 Simple ways to set your offers apart to get the deal
Are you tired of submitting offers and being overlooked? Areas like Stockton, Lodi , Tracy and Lathrop have been inundated with new buyers from the Bay Area and the local real estate is getting more competitive. Many of these suggestions have been used in high priced areas for years which is why many of Bay Area buyers are already doing them. Educate yourself and the one or more of the suggestions below to turn that no into a yes.
- Get Pre-Approved
There’s a difference between a pre-qualification and a pre-approval although most people don’t understand the difference. A pre-qualification is something lenders can provide to potential borrowers after running credit, analyzing your financials, and an automated underwrite. A pre-approval goes beyond a pre-qualification by nearly completing the loan process minus the property. This process takes longer but it will expedite your potential close time and it will give you an edge over the competition.
- Let the seller get to know you
Enclosing a thoughtful letter has been known to persuade sellers to accept one offer over another. Although someone may be selling the home they may still have some sentimental attachment to the home or neighborhood. Before making the offer consult with your agent to see if makes sense to write a letter to provide the owner comfort that the home and neighborhood will be good fit for you and your family.
- Make a non-contingent offer
This something I will never tell a borrower to do, but many times it will send a loud and clear message to the owner that you are determined and ready to buy their home. Inspection and Loan Contingencies exist to protect the buyers’ earnest money deposit in a transaction. When removing contingencies you essentially say that if I pull out of the transaction my deposit is surrendered.
- Offer to guarantee the value
After an offer is accepted there isn’t a guarantee that the appraiser can reach the value you’re seeking. Real estate prices have been on the rise and sometimes there aren’t suitable comps for an appraiser when they’re attempting to determine value. A way to reduce the fear over the appraised value would be to offer a maximum amount of money over the appraised value if it came in low.
For example: Offer 300k – If the appraised value comes in lower than offered price buyer will pay up to 5k over the appraised value for a total not to exceed 300k.
- Increase your earnest money deposit
Show the seller you’re serious by doubling or tripling the EMD. Having more invested in the transaction will give the seller a positive feeling about your offer.
Loan limits rise in San Joaquin County and Sacramento county for the third year in row. Over the past 8 years our housing prices have shifted drastically and many of our home prices saw 40-60% drops from their 2007 highs. The economy has been improving and our housing market has rebounded faster than most thought was possible; which is why were seeing loan limit increases. This is welcomed news as many homes in San Joaquin and Sacramento counties have been priced above FHA loan limits for years.
When Loan limits rise potential buyers can purchase a home that may have been out of reach by offering a wider variety of favorable guidelines that FHA and conventional loans provide. Buyers purchasing above set loan limits can still use Jumbo financing, but that also comes with many the negatives borrowers are looking to avoid like larger down payments, higher interest rates, and strict UW guidelines. Using traditional conforming financing is typically the cheapest and easiest financing to obtain which is why it’s so great when they widen the limits.
2017 FHA Loan Limits San Joaquin
| 2017 FHA Loan Limits - San Joaquin County (Stockton, Lodi, Manteca)
2017 Fannie Mae Loan Limits San Joaquin
|2017 Fannie Mae Loan Limits for San Joaquin County (Stockton, Lodi, Manteca)
2017 FHA Loan Limits Sacramento
|2017 FHA Loan Limits Sacramento (Elk Grove, Natomas, Galt, Folsom, Sacramento)
2017 Fannie Mae Loan Limits Sacramento
|2017 Fannie Mae Loan Limits Sacramento (Elk Grove, Natomas, Sacramento, Folsom,Galt)