Conforming Loan Limit to Get Boost
January 28, 2008 by Miranda Marquit
Filed under Economy, News, Real Estate, Trends
One of the beefs that many mortgage lenders and the National Association of Realtors have had when it comes to “economic stimulus” has been a lack of attention for the conforming loan limit. Now, that is likely to change.
In all the hoopla surrounding last week’s tax rebate announcement, the fact that the new plan allows for a temporary raise to the conforming loan limit was lost. The Seattle Times reports on this conforming loan limit move:
It would raise loan limits temporarily above $700,000 for the quasi-government entities Fannie Mae and Freddie Mac, which fund the bulk of the nation’s mortgages. Until now, these entities couldn’t buy and package mortgages larger than $417,000, the so-called conventional-loan limit. …
The House plan would permanently increase the maximum loan size for mortgages backed by the Federal Housing Administration (FHA) from $362,790 to $729,750.
For high-priced housing markets, this means that more people, especially first time home buyers, will be able to get conventional mortgages, rather than having to resort to much more expensive jumbo loans.
But no matter where you live, no matter the housing prices, you are probably in a buyer’s market. If you can afford to, now is the time to buy.
