HUGE Updates on Conventional Loans!

Big updates if you're a home buyer looking for conventional financing on your new home. Fannie Mae and Freddie Mac, which are the two big organizations behind conventional financing, just increased their area median income limits or ami. So previously the area median income for most of America was around $100,000. Well, there's a big line in the sand at 80% AMI, which would be around $80,000 if you were within so from zero to 80,000 of income and you qualify for your conventional loan, you get a break or lower interest rate and lower mortgage insurance. Well now this week, Fannie, and already increased that 80% mark up to $88,880 per year in household income. So now they stretch the line if you're within that mark, better rates, better mortgage insurance. Here's how it breaks down. In a real life scenario, if you have let's say a 700 credit score, you're getting a $300,000 conventional mortgage. Well, by being within the home possible home ready income limits, that's Fannie and Freddie's name for virtually the same program. Don't let that confuse you. You're within that $88,000 and change income mark, your interest rate would be about a quarter or 0.25% lower. That would save you about $50 a month on that 300,000 do and your mortgage insurance would drop from about $160 a month down to $85 a month. That's another $75 savings. So $125 a month better, just like that. Because now you fit within this higher limit. And here's the part that most loan officers and lenders don't know, so they won't even know to tell you you can make more than $88,000 and still qualify for this. Here's how. So let's say that your base income, Your salary is $88,000 a year and let's say you get overtime, a bonus or commission, some variable income that tips you over the scales. Well, if that extra income isn't needed to qualify you on your normal ra, we don't have to use it. We can look the other way in deep into the rule books. We can cut that part out. Just use your base income. That qualifies the debt to income ratio and the normal credentials. It doesn't tip you over the income limit. So we want to help you qualify for this. A lot of different ways to do it and because we always like to do things a little bit special. If you're within 80% AMI, not only do you get the better pricing, better rate, better mortgage insurance. We are also throwing in a $1,250 grant to help you out of pocket if you're within 50% AMI, which would be about $55,000 a year. We're throwing in a $2,500 grant to help with down payment and closing costs. So reach help yourself, save.