Home Buying in Staten Island>Question Details

jcregin, Home Buyer in Staten Island, NY

what is the maximum you can borrow on a conventional mortgage in Staten Island (Richmond County) ny before it becomes a jumbo loan?

Asked by jcregin, Staten Island, NY Wed Oct 3, 2012

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All of the amounts included in Joe's response pertain to 1 Family Homes. If the home you are referring to is 2 units the max would be $800,775, 3 units would be $967,950, and 4 units would be 1,202,925.

Instant Rate Quotes available at http://www.NYSmortgagerates.com

Best regards,
0 votes Thank Flag Link Wed Oct 3, 2012
The limit on mortgages backed by the federal government will be $625,500. Loans above that amount will be less available and more expensive. Previously, a mortgage of up to $729,750 was a conforming loan. With the change, however, any mortgage above the new limit will be a jumbo, and as such ineligible for government backing. As a result, those buyers will have to pay a higher interest rate or make a bigger down payment. Lenders consider jumbo loans risky because they must hold them on their books if they fail to sell them to private investors. As a result, interest rates on jumbos are typically from one-quarter to three-quarters of a percentage point higher than those for conforming loans. During the recession the federal government actually raised the conforming loan limit in New York to $729,750, specifically to spur sales in a city where prices far exceed national averages. Each November, Fannie Mae and Freddie Mac release their conforming loan limits for the upcoming year. The 2013 conforming loan limits are expected to remain unchanged at $417,000, with high-balance conforming loans available for up to $625,500.

There may be exceptions made for homeowners whose mortgages are currently between $625,500 and the former jumbo-conforming loan limit of $729,750, and whom are seeking rate-and-term refinances via HARP 2, but that announcement has not been made.

The FHA and VA have committed to keeping their existing loan limits in place through 2013. In high-cost areas, FHA and VA loans can extend to as high as $729,750.
0 votes Thank Flag Link Wed Oct 3, 2012
We are in negotiations now and the buyer states they cannot come up any further because their rates will change significantly if they do. The current counter offer we gave is $443,000 with $12,000 seller concessions toward closing costs with a 5% down payment. I believe that leaves them with a mortgage of about $420,000. They are saying their broker said they can't go over their current offer of $437,000 with 12,000 seller concessions with 5% down making a mortgage of about $414000 I think. Do you believe there is really a reason for this or are they likely playing games? I thought maybe it was due to the conforming loan limits being 417,000 but it looks like Staten Island has a higher limit according to your information above so now I am thinking this may be a game. Thanks for your reply.
Flag Wed Oct 3, 2012
It appears that loans in excess of $417,000 qualify as a jumbo loan, however, there are exceptions. Click on this link for additional information,http://www.ehow.com/info_7754866_jumbo-mortgage-new-york.html .......and even better, you should speak to a mortgage consultant for the most accurate and up to date information.
0 votes Thank Flag Link Wed Oct 3, 2012
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