Fannie Mae and Freddie Mac Baseline Limit Will Increase in 2018

Because of rising home prices, Fannie Mae and Freddie Mac have increased their loan limits in 2018.

  • Conforming loan for one-unit property in 2018 will be $453,100
  • Conforming loan for one-unit property in 2018 in higher priced counties will be higher, for example for San Mateo county it will be $679,650

FHFA Announcement – Loan Limits in 2018

Loan Limits by County in 2018


Will home prices continue to rise?


On average home prices have increased 6.9% over the past year.

“Among the states, Washington and Utah had the greatest year-over-year gains in August, up 13 percent and 11.2 percent, respectively. West Virginia was the sole state in August with negative home price growth, recording a 1.7 percent decline.”

Veros Real Estate Solutions, an analytics firm, forecasts that prices will continue to increase, specifically 4% over the next year.

“Our Q3 forecast reveals the largest percentage of markets we have ever seen that are forecast to appreciate, with only 3% of markets expected to depreciate – showing continued general market strengthening for the overall U.S. residential real estate market,”

But what about home prices in the Bay Area, Paragon Real Estate Group has a fascinating article looking at the “30+ years of San Francisco Bay Area real estate boom and bust cycles”:

“As of early-2017, it appears that the SF economy and housing market have cooled to some degree after 4 years of feverish appreciation. But the change varies by segment: The affordable house segment remains quite hot; more expensive house prices have generally plateaued; the condo market has cooled much more and seen price declines, and the luxury condo market has cooled the most. The condo market has been affected by the surge of new-construction condos hitting the market recently.”


Equifax Data Breach


The Federal Trade Commission has some good tips on protecting yourself against identity theft.

Whether or not your data was part of the Equifax Data Breach these are all good ideas for protecting yourself, such as:

– Putting a “credit freeze” or “fraud alert”, or “extended fraud altert” on your credit.

– Monitoring your credit. This can be done through or through a paid credit monitoring service. Another idea is to get a Discover credit card, and their monthly bill lets you know your FICO score from one bureau.

For more information and tips see:


Free (for the Landlord) Rental Screening


Are you thinking of buying an investment property? We have loan programs for both experienced landlords and those just starting out. We can help you calculate how much money you can borrow, how expensive the property you can afford, and how much rent and/or appreciation would make this a wise investment.

When deciding whether to take the plunge an important consideration is whether to hire a management company to find tenants, collect the rent, deal with any problems, etc or look after the property yourself. If you are leaning towards managing the property yourself, a handy service is the ApplyConnect Platform, they provide a free online rental application and free (for you) rental screening.

Note, Allwin Capital is in no way affiliated with ApplyConnect, this post is purely for your information. Please use due diligence when choosing any financial service.

Instead of asking potential tenants to give you their Social Security number and other sensitive and a check for the cost of running a rental credit report, you have the option of just sending them an email invitation for them to directly purchase their rental screening, and then the report is sent directly to you.

Continue reading “Free (for the Landlord) Rental Screening”

We can close some purchases in 7 days


“Late last week, Freddie Mac announced it would be extending its appraisal-free mortgage program to purchase loans starting September 1, 2017. Fannie Mae’s announcement quickly followed, offering its product effective immediately.”

Waiting for a full appraisal definitely slows the loan process down. But thanks to these new developments, we can close certain purchase loans in 7 days!
Criteria include that the property is owner-occupied and single family residence, and that the loan be less than 80% loan to value (LTV).
A fast closing is definitely an advantage when putting in an offer. Contact one our Loan Officers to see if you would qualify for such a lightening fast purchase loan.

Have you decided to sell your house in the next 7 years?


Have you decided to sell your house within the next 7 years?

In that case refinancing now with a 7/1 Adjustable Rate Mortgage (ARM) from a 30 year fixed would mean a lower interest rate for the first 7 years.

A 7/1 ARM, is a mortgage loan amortized over 30 years:

– the first 7 years start with a very low interest rate
– depending on the particular program the rate will then adjust periodically
(for example every 12 months)
– the new adjusted rates will be based in a particular interest index
(for example the “London Interbank Offered Rate” – Libor) + a margin
– the margin is the same for the life of the loan
(for example 3 %)
– most 7/1 ARM programs have caps, a lifetime cap good for the life of the loan,
and periodic caps, which cap how much the intereste rate can change each
rate adjustment

Anyway, if your intention is to sell within 7 years then the lower rates during the first 7 years of the loan, would offset the potential interest rate increases beyond those first 7 years.

Note, there are 1 year, 2 year, 3 year, 5 year, 7 year, and 10 year ARMs.

New Fannie Mae Debt Guidelines


New Fannie Mae guidelines will potentially help those with high debt. As long as the borrower’s debt to income ratio (DTI) isn’t above 50% and they have other positive factors, they could be approved for an affordable Fannie Mae mortgage.

“But here’s some good news: The country’s largest source of mortgage money, Fannie Mae, soon plans to ease its debt-to-income (DTI) requirements, potentially opening the door to home-purchase mortgages for large numbers of new buyers. Fannie will be raising its DTI ceiling from the current 45 percent to 50 percent as of July 29.”