July 10, 2020 at 2:32 pm #70286
Can someone please give me a clear answer about the new loan limit for new areas. I’m currently looking to purchase a home in DC and every penny is needed. MC and her office manager doesn’t seem to know anything about a change to the current loan amount.
Any help would be greatly appreciated.
Thank you!July 10, 2020 at 2:49 pm #70287
510K is the new conforming loan limit. High income areas have higher limits and are broken out by county. You can see in this map.July 10, 2020 at 2:57 pm #70288
Now I am more confused. Looking at the map it says it’s 530-765. If I was told I qualified for the max amount, shouldn’t it be 765? MC and her office manager don’t seem to know anything about this. Can you please advise me on this?July 10, 2020 at 3:02 pm #70289
Could it be that we need to be resubmitted for qualification to get the higher amount? We were qualified back end of May.July 10, 2020 at 3:15 pm #70290
That’s not how I am reading the map. Looking at the legend there are 4 colors and each color corresponds to a given range. If you zoom in on the map and scroll over each individual county you will see the exact amount for that county.
EVERY county in the DC MSA is dark orange which equals “Exactly $765,600”. The light orange legend is for counties ranging from “$530,001 to $765,000” and EVERY light orange county in Virginia is either a DC exurb or officially part of the Norfolk-Va Beach or Richmond (?) MSA.
In that case there should be no confusion as I see it. Each county only has 1 figure (again the color can be a range but the county cannot). If you are trying purchase in the official DC MSA the limit is exactly 765600.
Now for example if you were in Caroline and trying to purchase in Stafford it is possible you are crossing MSAs and maybe that’s where the confusion lies because you were not qualified in the MSA in which stafford is in.
I really don’t know I’m just guessing here but, based on what I have been reading on this forum, this is a FHFA federal regulation and as @ttrumble mentions the banks do not get to choose whether to apply it or not. There really is no reason I can think of why the DC office would choose to not follow the law unless as I mentioned you are trying to purchase in a MSA you were not qualified in.July 10, 2020 at 3:20 pm #70291
Well that is why I am also confused. When asked abut this I was told that NACA is choosing not to increase the amount. Should I ask my MC to resubmit my husband and I for qualification? My husband and I already qualified for the mAx amount in May.
We are trying to purchase in DC since my husband and i work in DC and our kid goes to daycare in DC.
I’m really confused here. I have given up on 3 houses already because they were slightly over the 726k amount and I was told in very clear terms via email that the amount is not changing.
Is there anyone I can talk to to get this changed?July 10, 2020 at 3:50 pm #70292
I just emailed MC and again she is telling me that she is not aware of this change and can’t do anything about it. I’m super confused and honestly starting to get frustrated.July 10, 2020 at 4:30 pm #70293Emerald1516Member
I am in this same boat. We are actually in contract and specifically waited until after July 1st so we could utilize the higher loan limits & talked our seller into waiting (as @Ttrumble suggested to another NACA member on this board.) Now my MC is saying the NACA system is not allowing the higher loan amount. I am so frustrated and hoping they can resolve the issue really quickly.
My brother is a realtor and confirmed with one of the lenders he has a relationship with they they immediately started using the 2020 conforming loan limits on July 1, 2020. I have a dear friend who works and NFCU and she confirmed they are also using the 2020 loan limits. Since NACA is also a conventional loan governed by the same FHFA figures I cannot understand for the life of me what is happening.
Hopefully Mr. Trumble can shine some light because this really puts us in quite a bind.July 10, 2020 at 5:50 pm #70294
I really hope @Ttrumble can help because I have had 3 offers rejected because i’ve been short of the asking price by about 10k. I really need the max amount to find something in DC.July 13, 2020 at 10:26 am #70326
I know some of you are waiting to find out if NACA will increase the amount for 2020 loans. The answer i was given Saturday is No per NACA CEO. Just thought i’d update you.July 13, 2020 at 11:07 am #70328Emerald1516Member
OH MY WORD. Where did you get this answer from? This is opposite of what the office manager and Tim said. I am devastated.July 13, 2020 at 11:17 am #70329
This is bad news and is inconsistent with expectations. Without knowing exactly what was asked or what was said this leads me to believe there is something lost in translation.July 13, 2020 at 2:13 pm #70335
This is the response i was given by Mr. Benjamin Codjoe-Regional operations director.
The entire team is aware but I’ve copied them on this email to clarify. Per NACA CEO, we are not exceeding 2019 conforming loan limits. See attached for the limit per county and note the high cost areas are the ones with single family limit at $726, 525. If that changes, we will update our policy to reflect it. Thank you for reaching out to me!July 13, 2020 at 2:18 pm #70336
I was very clear in asking about the 2020 loan limit and even mentioned that there is a conversation on the forum. his response seemed to indicated to me that thy are about to communicate to NACA offices that the amount will not change to meet the 2020 numbers. I am also very disappointed as I am losing out on a house yet again.
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