2019 vs 2020 Conforming Loan Limits

Home Forums Purchase Program 2019 vs 2020 Conforming Loan Limits

Viewing 15 posts - 1 through 15 (of 18 total)
  • Author
    Posts
  • #66909
    girlfoolish
    Participant

    Hello, I’m hoping someone has information here regarding the Conforming Loan Limits…

    I am purchasing a duplex in Los Angeles County for $880K. It needs major, major work. The HAND department is requiring $57K in repairs. After all the fees, my total loan amount is approximately $967K. 2019 loan limits for a duplex in California for Los Angeles County is $930K, but in 2020 it’s $980K. It sounds like I just made the limit for 2020, but my agent is saying that NACA is not considering 2020 conforming loan limits and is sticking to the 2019 benchmarks. Does anyone know if this is factual? @TTrumble

    #66969
    TheLongJourneyHome
    Participant

    You are correct. The loan limits have not been adjusted for 2020. They are the same as 2019 still.

    But from my understanding, you can borrow 110% of the max loan amount because if the repairs. (If I understood that right )

    #67230
    TTrumble
    Member

    Hello girlfoolish,

    Unfortunately, TheLongJourneyHome didn’t understand it quite right. The HAND program will allow you to borrow up to 110% of the home’s “subject to” (post-renovation) appraised value. However, that still means that the total amount of the loan must fall within your affordability as well as the Conforming Loan Limits for your area.

    The 2020 Conforming Loan Limit figures will go into effect on July 1st. Until then the 2019 figures are still in place. By the way, that’s for everyone. Lenders don’t get to pick what date they get to start using the new figures. So it’s not a matter of us “sticking to the 2019 benchmarks”. The new numbers just aren’t in effect yet.

    I’m sure that puts you between a rock and a hard place, since we’re a little more than two months from being able to submit the bank application.

    If the $967,000 is within your affordability and you can somehow stretch things out that long, keep working with your counselor to keep your file up to date and maintain your qualification. then just before the end of June, have the file submitted for Credit Access Approval with the understood “pre-condition” that the bank app cannot be submitted before July 1st in order to take advantage of the new CLL numbers.

    One point you can use to hopefully convince the seller of the idea is that prior to July 1, the amount needed will be considered a “Jumbo” loan which is much harder (for anyone) to obtain and that NACA cannot do, but after July 1 all that changes, giving you a big advantage.

    I sincerely doubt the seller wants to re-list at this point, especially with the virtual lock-down in California right now, so they’ll probably be hard-pressed to find a new buyer before then anyway.

    I wish you the best!

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #69490
    clafontant05
    Participant

    Mr. Trumble,

    How can I get this information verified by the DC office? I am being told by the office manager that NACA has chosen not to increase the max amount even after July 1st.

    Is it possible that they just don’t have this information? We would love t o talk to someone about this.

    #70011
    Amyk
    Participant

    Hi,

    We are in Sunnyvale, California, and have the same question.

    When I asked our mortgage counselor about it, she said:
    ‘am glad he wrote what he did on the blog, but please note that it has not yet reflected in the file. you could email him so that he can get the right departments to update the system, but beyond that, I can’t pull the PSL for the requested amount the system will not allow that’

    Can you please let me know when the NACA web file will be updated to reflect the 2020 loan limits? We would like to write an offer due July 8 with the 2020 loan limits.

    If you cannot answer the question, please let me know who I can reach out to.

    Thank you,
    Amy Krystosik

    #70012
    O
    Participant

    @girlfoolish – Were you able to purchase the duplex? I hope so. I’m in LA County too and my goal is to purchase a multi-family unit as well–so I was excited to come across your post. I’m at the beginning of my NACA journey…..waiting for qualification.

    #70120
    TTrumble
    Member

    Hello Amyk,

    The numbers should be updated in the system now.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #70132
    Amyk
    Participant

    Hi, Tim. Thanks for the update. I tried to print a property-specific letter just now and still get the same error message. Could you please advise.
    Thanks,
    Amy

    #70165
    TTrumble
    Member

    Hello Amyk,

    You will need to contact your counselor on that one. I’ll double check with my IT guy, but that should have been taken care of last Tuesday, and he very very very rarely misses something like that.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #70177
    Amyk
    Participant

    Thanks, Tim. As clafontant05 mentioned above, my mortgage counselor was not even aware of the change in loan limits. Is there an official reference I can point her to so that we can have her write a property-specific letter with the new loan limits?
    Thank you,
    Amy

    #70187
    clafontant05
    Participant

    HI Tim,

    I Thank you for your response, however I have a very detailed email by the DC office manager and he told me that NACA will NOT adjust the loan limit to meet the 2020 amount even after July. 1st. I mentioned that on the forum there is a discussion about it and I was told again that NACA is choosing not to increase the amount. even after July 1st.
    The office manager even took it up with the regional manager and the answer was the same. the exact words were “Our purchase price maximums will remain the same regardless of the updated conforming loan limits and/or any other newly published data.”

    #70203
    clafontant05
    Participant

    I am really interested in the solution to this. There seems to be a. bit of confusion.I am hesitant to contact MC about this again because I feel that the door. was pretty shut on this. Can you please advise Tim. Thank you!

    #70387
    HelpMeNaca
    Participant

    Hi, I noticed you said you were in contact with the DC office manager. Are you able to give me the contact info I have been waiting for months and have not even been assigned an MC. I tried to call corporate and they told me the meeting that I had scheduled for August was cancelled. Nobody even bothered to tell me this. My lease is about to be up. It is getting really hard to advocate for NACA when I feel like I am being constantly ignored by them. 🙁

    #70390
    Nelsont
    Member

    Google naca dc. The office number will be the first result. Or you can find it on the naca locations webpage. Be patient as it is probably forwarded to the office administrators home phone if they aren’t in the office. If you call once or twice per week you can check for cancellations and slide right into one of those spots.

    #70401
    HelpMeNaca
    Participant

    @nelsont thank you. I have tried that too. No one ever picks up and when I press 0 to leave a message or talk to the next available person it hangs up.

Viewing 15 posts - 1 through 15 (of 18 total)
  • You must be logged in to reply to this topic.
Follow us on Facebook RSS Feed Follow us on Twitter