I called the mortgage department and he confirmed that NACA “should” be updating the loan limits, “because home prices have changed so much in the past 2 years.” With it being July 1st, any update @ttrumble ?
2021 conforming loan limits are $548,250 & NACA is using 2019 limits pre-pandemic limits as well..this isn’t helping us who just need somewhere to live yet outbid on every single home. Two years behind on limits?
When will NACA update limits to the current times as reality is this isn’t helping especially since the buy down rates are worse it’s like a double negative for us.
I’m just going to put this out there because it’s highly relevant to the question of if/when conforming loan limits will change. I heard this from NACA staff (no names) and just need to know if other members or staff have done this to help members in this hot market. If a house is listed at $710k, is it fine to offer $725k plus, say $20,000 in seller incentives (towards seller closing costs and agent commission fees, i.e., total = $745k)? Even more importantly, is it ok to write these offers on houses listed above the conforming loan limit? For example, if a house is listed on the market at $750,000, can you offer $725,000 and pay $25k in seller concessions as described above, or even going higher than the $25k cash to be more competitive. Has anyone experienced these types of transactions at NACA? The wording in the purchase manual about this says, “…A buyer cannot pay additional funds to the seller as a down-payment to reduce the mortgage amount to be within the conforming loan limits but with an out of range purchase price.” What’s a “down-payment” to the seller? Is paying for seller closing costs and/or seller’s agent commission fees considered a “down-payment” to reduce the mortgage amount to be within the conforming limit? OR are these costs considered seller closing costs, and not a “down-payment” to the seller? If any member has managed to make a purchase in this way, please let us know and provide some details if possible. Being a purchase member with a large family in a high income MSA is extremely challenging, as others have mentioned. Thank you.