have an ITIN. An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security number (SSN) from the Social Security Administration (SSA).
MORTGAGE AMOUNTS
The size of a mortgage is expressed as either conforming or non-conforming (also referred to as jumbo). The dollar limits to determine if it is conforming or jumbo are set by the Federal Housing Finance Agency (FHFA). A jumbo loan is one that is larger than the conforming price set by the FHFA. Non conforming (jumbo) loans will have different guidelines than smaller ones. In addition to requiring a higher income level they often set a lower allowable Debt to Income ratio, higher FICO credit scores, and larger amounts of assets in reserve in personal accounts after the closing. The conforming loan limits are reviewed once a year by FHFA but do not have to change. Currently (2024) conforming loan limits in most of the 48 contiguous states and Washington D.C. are $806,500 for a single-family home. The limit is higher for 2-4 family units. High-cost areas such as parts of California, CT., and NY currently have a conforming limit of $1,209,750 for a single-family residence. Your loan officer will tell you exactly what the limits are in the area that you are planning to make your purchase. Now that you know about the mortgage options let’s become familiar with the people involved in making the mortgage process work.
THOSE INVOLVED IN THE LEND VED IN THE LENDING PROCESS
29
Powered by FlippingBook