Rocket Pro TPO to Increase Conventional Loan Limits And Introduce New Home Equity Programs

Rocket Pro TPO continues to adapt its strategy to changing market conditions. While some of the industry’s major players are struggling to keep up and going out of business or selling out in bulk, Rocket is ahead of its game with unique products. 

Rocket today announced that the FHFA will raise its usual loan limit to $715,000 before raising the loan limit in November. 

The current limit on typical loans is $647,200, giving Rocket partners and customers a huge advantage over competitors, the company said. “We’re increasing our loan limit by more than 10% from our current level,” said Austin Niemiek, executive vice president of Rocket’s Hall Sale loans. 

“Brokers can start submitting new applications from today and set up new blocks from today. It won’t be officially announced until November, but we will be able to offer new lines of credit and raise funds through our platform.”

Other lenders, such as United Wholesale Mortgage, are launching more jumbo products to adapt to rising house prices. 

However, this has more stringent requirements on the borrower, higher interest rates, and usually longer deadlines. But these stricter requirements are why borrowers don’t ask more questions than they can chew. Niemiec said Rocket is not concerned about excessive customer debt. 

This is because traditional guidelines are sufficient to ensure the financial reliability of borrowers. “These loans have all the great guidelines set by Fanny and Freddy, so they are surprisingly good quality loans, but by increasing the credit limit, we are using traditional loans over jumbo loans. 

More people can.. you will see better rates and prices. Huge purchases cost less and refinancing costs more. 

Traditional loans are generally easier to process and have lighter paperwork than jumbo loans, so there are all sorts of advantages. “

Niemiec believes Rocket will be the first company to adopt higher traditional credit limits, giving it an edge over its peers. 

Rocket Partners is now the first company to sell this product to both customers and distributors. 

This gives brokers a significant competitive advantage over their competitors and helps borrowers differentiate themselves from competing offerings, he said. Conventional loans are generally more attractive to sellers than jumbo loans. It offers customers better interest rates, lower monthly mortgage payments, and allows them to close their homes faster. 

Additionally, Rocket said it will be launching a new home loan product later in September, which anticipates a very rapid increase in demand. “If you look across America, there has never been so much home equity in our country’s history, but never has there been so much debt,” Niemiec said. 

Especially since credit card debt is at an all-time high, our new equity loan gives consumers and brokers another option to take advantage of that record high.

Rockets offer a 90% loan-to-value ratio. This is significant compared to a typical equity loan and allows the consumer to take advantage of more equity. 

Rocket’s fixed-rate mortgage terms are 10 and 20 years. Most other home equity loans offer adjustable interest rates, so it’s worth using a fixed product in a rising interest rate environment.

Rocket also offers these products on its elite technology platform, which makes it more difficult for brokers to close these deals, he said. 

While most home purchase loans (HELOCs) can take months to complete, Rocket’s network portal takes weeks. “Prices are going up, interest rates are going up, debt is going up, and the only good thing is holding stocks. Americans now have more assets than ever,” says Niemiek. 

“That is why we urgently need to bring this product to the market. Consumers need it now. “

“As a country, we have two unique products that help keep payments to short-term borrowers low as we work to tackle this inflation problem,” she added. “So there’s more to come.”