ThomasRiddleGroup

ThomasRiddleGroup

New Appraisal Requirements Announced for Jumbo Loans by HUD

The procedure for obtaining a loan continues to tighten as the banks, investors, and HUD figure out how best to insure that jumbo mortgages are secure investments.  The US Department of Housing and Urban Development (HUD) announced on April 1, 2008 that jumbo mortgages (loans exceeding the conforming loan limit of $417,000) may require 2 appraisals in order for a buyer to obtain a loan commitment.   According to the HUD Mortgagee Letter, a 2nd appraisal may be required when 3 requirements are met:

  • The loan amount, excluding the upfront mortgage insurance premium, will exceed $417,000, and
  • The Loan-to-Value equals or exceeds 95%, and
  • The property is determined as being in a declining market.  A declining market is determined by either the appraiser or the lender.

Every time I speak with one of our lenders, it seems there are more and more changes that need to be understood and incorporated into the mortgage approval process.  However, this is probably a good change… though it could slow down or add additional cost to the process.  I find myself counseling our buyers that there is a little bit of a learning curve as everyone becomes more familiar with the sweeping changes that have taken place in the mortgage industry.

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on email
Recent Posts

5 Tips for Building a Smart Home

Smart Homes exist for one reason only: To make your life much easier. If you are on the fence about setting up your Smart Home, here are a few tips and ideas that can help you make your decision.

Get in Touch

Have questions? We’re happy to help. Ask us here and we’ll get back to you right away.

Compare listings

Compare

Get Started With A Free, No-Obligation, Market Analysis.

As full-time and fully dedicated real estate agents, our sole focus will be on your sale and your happiness. We will always be a call, email, or text away to advise you as needed.

Note: Please be assured we will use this information only to send you the information you have requested and we will never share or rent your contact information with any other party. By giving us your name and email address, you are giving Thomas|Riddle Real Estate Group permission to contact you.