There are two major changes that will take place in the home lending industry in 2018.
The first is an increase in lending limits, both locally and nationwide. Here in San Diego, the lending limit will increase to $679,500. In Riverside, the lending limit is increasing $453,100. This affects conventional conforming loans, FHA loans, and VA loans. This means you'll be able to buy a bigger, more expensive house in 2018 than you were this year.
The second change is the introduction of new lending programs. Today, I'll list three of those programs.
The first is the Bank Statement Program, which is designed for individuals who are self-employed. Instead of having to show two years' worth of taxes, we take the average of all of your deposits for the past 24 months to calculate your purchasing power.
The second is the 90%, one loan, no mortgage insurance program. This loan is perfect if you bought a house last year or two years ago and are waiting for the property to increase 20% in order to remove the mortgage insurance. With this loan, there's no need to wait that long. If your property has appreciated as much as 10%, we can refinance your loan, switch it from an FHA loan to a conventional loan, lower your interest rate, and remove your mortgage insurance. You'll save hundreds of dollars each month!
The last program is the Fresh Start Program, which is for those who filed for bankruptcy or had a short or a foreclosure. With this program, you don't have to wait as long as seven years to buy a house again.
If you have any questions about these changes or you're looking to buy or refinance a home, don't hesitate to reach out to me. I'm here to help you.