Announcement 2021- 079 - Conforming Loan Limits Update

Effective with new loans locked on or after October 27, 2021, Newrez will begin supporting increased conforming loan limits for Standard ARMs, HomeReady and Home Possible conforming products. The new loan limits will be:

 

Temporary Expanded Conforming Loan Limits

Units

Standard Conforming

AK & HI

1

$   625,000

$ 937,500

2

$   800,250

$ 1,200,375

3

$   967,250

$1,450,875

4

$ 1,202,000

$1,803,000

 

Requirements

  • Loans must receive a DU Approve/Ineligible or LPA Accept/Ineligible; “Ineligible” solely due to the loan amount being in excess of the 2021 limits, and within the limits noted above.
  • Newrez will require a full appraisal on loans locked with balances above the current loan limits and up to the expanded loan limits, regardless of the DU/LPA appraisal recommendation. Appraisal waivers are not acceptable.
  • Properties in high-cost counties may see both the High-Balance or Super Conforming and Expanded Loan Amount (ELL) products return as Eligible for their loan. Originators should select the product that offers the borrower the best price for their particular scenario.
  • Pricing
    • Loans that fall into the expanded loan limits will be priced as a standard conforming loan with the following adjustments:
  • Purchase and Rate and Term Refi = -0.20
  • Cash-out Refi = -0.50

 

Eligible Products

Temporary Expanded Loan Limit (ELL) Products

Productid

Productalias

Productdescription

Fannie Mae Conforming ELL Products

2404

2000FNMA5/6SOFRARMELL

2000 FNMA 5/6 SOFR ARM 2-1-5 - ELL

2403

2000FNMA7/6SOFRARMELL

2000 FNMA 7/6 SOFR ARM 5-1-5 - ELL

2402

2000FNMA10/6SOFRARMELL

2000 FNMA 10/6 SOFR ARM 5-1-5 - ELL

Freddie Mac Conforming ELL Products

2406

3000FHLMC5/6SOFRARMELL

3000 FHLMC 5/6 SOFR ARM 2-1-5 - ELL

2407

3000FHLMC7/6SOFRARMELL

3000 FHLMC 7/6 SOFR ARM 5-1-5 - ELL

2405

3000FHLMC10/6SOFRARMELL

3000 FHLMC 10/6 SOFR ARM 5-1-5 – ELL

Freddie Mac Home Possible ELL Products

2394

3000FHLMC10FRMHPELL

3000 FHLMC 10 Yr Fixed Home Possible - ELL

2398

3000FHLMC15FRMHPELL

3000 FHLMC 15 Yr Fixed Home Possible - ELL

2397

3000FHLMC20FRMHPELL

3000 FHLMC 20 Yr Fixed Home Possible - ELL

2399

3000FHLMC25FRMHPELL

3000 FHLMC 25 Yr Fixed Home Possible - ELL

2400

3000FHLMC30FRMHPELL

3000 FHLMC 30 Yr Fixed Home Possible - ELL

2395

3000FHLMC5/6SOFRARMHPELL

3000 FHLMC 5/6 SOFR ARM 2-1-5 Home Possible - ELL

2396

3000FHLMC7/6SOFRARMHPELL

3000 FHLMC 7/6 SOFR ARM 5-1-5 Home Possible - ELL

2401

3000FHLMC10/6SOFRARMHPELL

3000 FHLMC 10/6 SOFR ARM 5-1-5 Home Possible - ELL

Fannie Mae HomeReady ELL Products

2386

2000FNMA10FRMHRELL

2000 FNMA 10 Yr Fixed HomeReady - ELL

2387

2000FNMA15FRMHRELL

2000 FNMA 15 Yr Fixed HomeReady - ELL

2389

2000FNMA20FRMHRELL

2000 FNMA 20 Yr Fixed HomeReady - ELL

2388

2000FNMA25FRMHRELL

2000 FNMA 25 Yr Fixed HomeReady - ELL

2390

2000FNMA30FRMHRELL

2000 FNMA 30 Yr Fixed HomeReady - ELL

2391

2000FNMA5/6SOFRARMHRELL

2000 FNMA 5/6 SOFR ARM 2-1-5 HomeReady - ELL

2392

2000FNMA7/6SOFRARMHRELL

2000 FNMA 7/6 SOFR ARM 5-1-5 HomeReady - ELL

2393

2000FNMA10/6SOFRARMHRELL

2000 FNMA 10/6 SOFR ARM 5-1-5 HomeReady – ELL

 

Resources

Refer to the applicable Newrez Product Profiles located on the Credit Policy and Product Development intranet site in the Newrez Lending Library.