mortgage guidelines on government and conventional loans

2020 Mortgage Guidelines Changes And Year End Recap

Gustan Cho Associates are mortgage brokers licensed in 48 states

This Article Is On 2020 Mortgage Guidelines Changes And Year-End Recap

2019 was a great year for the mortgage industry and Gustan Cho Associates.

  • It was a year filled with ups and downs in the market
  • In this blog, we will detail a few changes Gustan Cho Associates made during 2019 and a preview for what’s to come in 2020
  • We appreciate our loyal readers and our new YouTube CHANNEL

2020 Mortgage Guidelines Changes On Loan Limits

The beginning of 2019 was a great time to take out a new mortgage as the agencies raised the maximum loan amount requirements for conventional, FHA, and VA mortgages.

  • There is once again an increase for 2020
  • More information on the new loan limits please click this LINK
  • The beginning of 2019 also some rate reductions across-the-board for all mortgage loans
  • Mortgage rates continue to drop starting in November of 2018 and remain low today

All indications predict rates will remain stable for the next year or so. When rates are low, it is a great time to invest in real estate.

Homes For Heroes For First Responders, Veterans, Teachers, Medical Professionals

In 2019, Gustan Cho Associates started participating in the HOMES FOR HEROES program. It is a little-known program to help those who help everyday life exist. The program will pair you with a licensed realtor who also participates in the program. Gustan Cho Associates will pay for your appraisal costs at closing for any first responders, teachers, police officers, veterans, and medical personnel. Just one way we like to get back to our community.

TBD Property Underwriting Pre-Approvals

TBD Property Underwriting Pre-Approvals

In 2019 we also brought back our TBD UNDERWRITING process.

  • We deal with some crazy loan scenarios that most lenders will not even look at
  • Sometimes it is best to have your file underwritten in advance, just to make sure you do not waste any money on inspections or earnest money
  • This TBD process is put in place to underwrite your credit and assets before putting an offer on a property
  • If you utilize this TBD process, once we have title work and appraisal, we can close your mortgage loan quickly
  • This process is meant to be used for sticky loan files or for situations where our clients may have been turned down in the past

Now they want to slow the process down and make sure they qualify before putting an offer in on a new property. We are excited to have this tool at our disposal.

2020 Mortgage Guidelines Changes Due To Booming Economy And Housing Market

The housing market is predicted to rise during the calendar year of 2020.

  • Some experts anticipate 2020 as being a seller’s market
  • Inflation is expected to remain low, under the 2% target
  • This should keep mortgage rates study for most of 2020
  • Springtime is a great time to purchase a house
  • Usually, there is the most inventory during the Spring months
  • While the global economy seems to be a tug-of-war battle between inflation in trade talks, our economy is at an all-time high
  • Most Americans also receive a tax refund during the Spring months which can be applied towards the down payment and closing costs
  • If you are gearing up to purchase in the spring, reach out to start your pre-approval process as soon as possible

This way you can shop as new inventory hits the market. If you have children, It is also an opportunity to have them enrolled in a new school district for the 2020/2021 school year.

The Main 2020 Mortgage Guidelines Changes That Affect Mortgage Borrowers

The economy and housing market are booming like never before in history. One of the main 2020 mortgage guidelines changes is HUD and the FHFA has raised loan limits for 2020. 2020 FHA Loan Limits is now capped at $331,760. The loan limit is higher in high-cost areas for both FHA and Conforming Loans. The FHFA has raised 2020 Conforming Loan Limits to $510,400. President Trump signed a bill exempting the maximum loan limit on VA Loans effective January 1st, 2020. The VA no longer has a maximum loan limit on VA loans. On the negative side, HUD reduced the maximum loan to value cap to 80% LTV from the 85% LTV on cash-out refinance mortgages. The VA reduced the maximum loan to value limit down to 90% from the 100% LTV cap on VA cash-out refinance mortgages. Many mortgage companies are eliminating many lender overlays to be competitive with no lender overlays lenders. More non-QM and non-traditional mortgage programs are being introduced and launched in the market due to the booming housing market. Bank statement mortgage loans for self-employed borrowers with no income tax returns required are becoming increasingly popular.

Gustan Cho Associates Expected To Have The Best Year Ever Due To 2020 Mortgage Guidelines Changes

2020 is shaping up to be a huge year for our team. While many mortgage companies are downsizing, we are growing at a rapid rate. From additional loan officers to hiring more processors and underwriters, we are growing to accommodate your mortgage needs. We encourage you to check out our reviews on sites such as ZILLOW. As we help more families, you will see more and more success story reviews. If you live in a state where we are not licensed, stay tuned during 2020 as we will be adding more state licenses to our list. For any mortgage questions please contact Mike Gracz on (800) 900-8569 or text for a faster response. Or email us at We are available seven days a week including holidays.

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