Solano county Loan limit changes 2009 PMI escrow closing ratios etc

As of January 1, 2009: FHA loan maximum limits have been reduced to $400,200 in Solano county, each county differs, so check with your lender. The FHA minimum down payment has increased to 3.5%, up from 3%. 100% VA loans can still be obtained, there are some fees that are mandatory to request from the seller, so let your Realtor know this so the contract can be written to accomodate this fact. You may use your VA loan more than once, as long as the previous loan amount has been satisfied by a loan payoff. If your loan was assumed by another VA buyer, you must wait until that loan is freed up for your use. Conforming loan maximum limits have reverted back to that of 2007: $417,000. This means that if you need to borrow more than $417,000 you will be facing a Jumbo, non-conforming loan which my have higher down payment requirements, higher FICO score requirements, higher debt to income ratios and higher interest rates, OR a combination of aqny of these components. If you need more than the loan amounts stated above, you may choose to put a higher down payment or ask for seller financing to span the difference. If you put down less than a 20% down payment you will be paying PMI mortgage insurance which is factored into your ability to repay the loan, check with your tax preparer, all or part of this may now be tax deductible in certain cases, in the past it never was. Once your equity exceeds a certain amount, PMI insurance can be removed from your loan package, after an appraisal and certain other conditions met, check with your lender before proceeding. In 2009, your lender may require you to deposit a few PMI insurance payments into your escrow account at closing, which will increase your costs to close escrow. Learn the terms and definitions so you can be aware of the process. Barbara Adams, Realtor  Kappel and Kappel Inc. 401D Davis Street Vacaville, Ca 95688  707-673-7500 Cell 707-471-4068 eFax   Homes/Investment/Land/Ranches VacaHomes.com