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Conventional Loan Limits for 2019

Big news! The Federal Housing Finance Agency (FHFA) announced Nov. 27 that it is increasing the conforming loan limit for Fannie and Freddie mortgages in nearly every part of the U.S.

According the FHFA, conforming loan limits will rise from this year’s total of $453,100 to $484,350 for 2019. That’s an increase of 6.9% from this year’s loan limit to next year’s.

This marks the third straight year that the FHFA has increased the conforming loan limits. 

Effective Dec. 1, 2018, JMAC will now accept the new 2019 Loan Limits on the following products:

  • FHLMC Home One

  • FHLMC Home Possible

  • FHLMC Standard

  • FNMA Home Ready

  • FNMA Standard

For all Fixed-Rate products, loans will require a new DU/LPA ran on or after 12/10/18, and the earliest the loan can close is 12/17/2018.

For all ARM Products, loans will require a new DU/LPA ran on or after 12/10/18, and the earliest the loan can close is 1/2/2019.

Please note that for all FHLMC Products, loan amounts over $1,000,000 will not be eligible until 12/19/2018 when LPA is updated to allow loan amounts above $1,000,000.

Units Continental US Hawaii Units Continental US Hawaii
Conforming Maximum Loan Amount 2019 High Balance Maximum Loan Amount 2019
One $484,650 $726,525 One $726,525 $726,525
Two $620,200 $930,300 Two $930,300 $930,300
Three $749,650 $1,124,475 Three $1,124,475 $1,124,475
Four $931,600 $1,397,400 Four $1,397,400 $1,397,400

ZUMA NON-QM Guideline Updates

ZUMA Prime

  • Simplified the LTV/Loan matrix by removing the separate 12-month income documentation columns, the max LTV for 12-month now displayed under Program Restrictions.

  • WVOE – max 80% LTV Purchase & Rate/Term, max 70% LTV cash out, use 24-month LTV/Loan matrix.

  • Under the 95% LTV restrictions, increased the max DTI to 43%.


ZUMA Credit Flex

  • Simplified the LTV/Loan matrix by removing the separate 12-month income documentation columns, the max LTV for 12-month now displayed under Program Restrictions.

  • WVOE – max 80% LTV Purchase & Rate/Term, max 70% LTV cash out, use 24-month LTV/Loan matrix.

ZUMA Prime and Credit Flex

  • Interested Party Contributions – increased LTV tier from 75% to 80%.

  • Appraisal Review - Added the ARA product from Computershare as an eligible review option.

  • Ineligible Property Types – Added properties involved with the sale of banned federal substance.

  • Property Flipping – Decreased the time period for defining a flip transaction from 12-months to 6-months.

Non-Warrantable Condos

  • Increased max single owner concentration to 25%.

  • Increased max allowable commercial space to 50%.


  • Defined cash-out to include any transaction on a property owned free and clear.

  • Clarified the payoff of delinquent real estate taxes is considered cash out.

  • A letter of explanation required for cash out exceeding $250,000.

  • Cash-out proceeds eligible for reserve requirements.

 Additional changes:

  • Changed of Fico from 580 to 620 on Credit Flex and Investor Solutions;

  • Cut off to close out current loans in pipeline is by November 30th.  

  • Non-Occupant Co-borrower – increased max DTI for occupying borrower to 60%.

  • Housing History – borrower living rent free, expanded eligible income documentation types and removed additional reserve requirements.

  • Consumer Credit – clarified the treatment of charge-offed 2nd lien.

  • Reserves

  • Clarified for an ARM loan, reserves are based on the initial PITIA.

  • Cash-out proceeds eligible for reserve requirements.

  • Full Income Documentation – Self-employed borrowers, removed the requirement for business tax transcripts and a balance sheet.

  • Written Verification of Employment – added an income documentation option utilizing a WVOE.

Self-Employed Solutions

  • Business bank statements now eligible for 12-month bank statement option.

  • Combined the 24-month and 12-month business bank statement qualifying options.

  • Personal Bank Accounts – reduced the minimum ownership percentage to 20% for eligibility.

  • Business Bank Accounts – reduced the minimum ownership percentage to 50% for eligibility.

  • Added clarification on how to document ownership percentage.

Asset Utilization – Added an option to determination loan qualification based upon total assets (No DTI calculation).

Investor Solutions

  • For Business Purpose transactions:

  • ARM qualifying based upon note rate.

  • Loans with an interest only feature qualified using interest only payment.


Introducing ZUMA: The Ultimate Non-QM Program

JMAC_Zuma Email image.jpg

ZUMA is JMAC's new flexible, non-QM lending option that can help your hard-to-qualify clients get approved with 12- or 24-months bank statements or 12- or 24-months full documents. The ZUMA program is available in three levels: ZUMA Prime, ZUMA Credit Flex and ZUMA Investment.

  • No seasoning requirement on settled derogatory credit, such as deed-in-lieu, bankruptcy, foreclosures and short sales

  • Minimum of 2-months reserve on subject and 2-months reserve on each additional up to 12 months

  • Cash in hand may be used to meet reserve requirements (restrictions apply)

  • 5/1 & 7/1 ARM, 15- & 30-year fixed, with 30- and 40-year interest-only

  • Max DTI up to 55%

  • 1x30 mortgage late payments allowed within 12 months

  • Non-occupant co-borrower allowed

  • Up to 20 financed properties (max 10 acres)

  • Loan amounts $75K to $5M

ZUMA Prime

  • Up to 95% LTV to $1.5M on Purchase and R&T

  • FICOs from 660

ZUMA Credit Flex

  • Up to 90% LTV on Purchase and R&T

  • FICOS from 580

  • Pricing on Grade A, B, B-, C based on credit

ZUMA Investment

  • Up to 80% LTV to $1M

  • FICOs from 580

Updates to Venice Guidelines

Effective immediately, the following changes were made to the Venice Guidelines regarding Foreign Nationals:

  • Only 2 credit references are required instead of 3

  • Only 6 months of reserves are required instead of 12 months

  • Only the reserve requirement needs to be moved to a U.S. account prior to closing. The funds for down payment and closing can be wired directly to the title company. Two months of bank statements to source funds for closing and down payment are still required.

  • All documents in a foreign language must be translated by a third party. The translator does not need to be certified.

  • Borrower only needs to provide 10% of their own funds. The remainder can be gifted. Gift funds cannot be used to meet reserve requirements.

  • Interested-party contribution updated to 5% instead of 2%.

  • Non-warrantable condos allowed with a 5% reduction in LTV/CLTV (excluding Florida)

Limited Reviews on Investment Property Condos Now Permitted by FNMA

Effective immediately, JMAC Lending is now accepting LIMITED REVIEWS on Investment Condos per Fannie Mae’s recent announcement.

Limited Review Parameters

Maximum LTV/CLTV/HCLTV: The maximum LTV/CLTV/HCLTV is dependent upon the method by which the loan is evaluated and decisioned as well as where the property is geographically located Approve/Eligible Loans

  • Primary Residence: 90%/90%/90% (75% / 90% / 90% for Florida properties)

  • Second Home: ≤75% / 75% / 75% (70% / 75% / 75% for Florida properties)

  • Investor: 75%/ 75%/ 75% (70%/ 75%/ 75% for Florida properties)

Laguna Guidelines Update

The followings changes were made to the Guidelines:

  • Updated MSA List

  • Updated Market Classification Restricted List to show which counties are unable to lend over 80% LTV

  • Added all tax liens need to be paid off, page 14

  • Added Google GSU stock allowed under restricted stock guideline, page 15

  • Added additional income guidelines for fixed income, page 16

  • Added gift funds can be wired directly to escrow if coming from US account funds, page 18