Higher loan limits inching toward reality!
Yesterday, the US House of Representatives overwhelmingly passed HR 5140 – an economic stimulus package that includes a temporary increase in the conforming loan limit and the upper threshold for FHA loan programs to as much as $729,750 in high-cost areas. The temporary increase would last only until the end of 2008. The bill would also restrict Fannie Mae, Freddie Mac and the Federal Housing Administration from guaranteeing or purchasing loans above 125 percent of the median home price for a given area. That means that the existing $417,000 conforming loan limit for mortgages eligible for purchase by Fannie and Freddie would not increase in areas where the median home price is $333,600 or less. The problem of course, is that as of right now, no one knows what the median home price is in different markets because this data has never been published by HUD!
Therefore, it would be up to the Secretary of Housing and Urban Development to determine the median home price for different housing markets "as soon as practicable," but no later than 30 days after passage of the bill, relying on existing commercial data where needed. In other words, if median home prices in your marketplace are $336,000 or less, this bill won't really affect you; and there's no way to tell if median home prices in your area are higher than $336,000 until HUD publishes this data. Nevertheless, jumbo relief is certainly on the way for places like California where median home prices are certain to be above $336,000.
In order to make higher limits a reality, the next step is for the Senate to pass the bill and for the President to sign it into law. The target date for final passage set by the White House and Congressional leaders is February 15, so let’s hope for the best and I’ll be sure to keep you posted as I have more information.
Tyson
Wednesday, January 30, 2008
FED DAY...FIND OUT WHY ITS NOT WHAT...
DO YOU THINK YOU KNOW WHAT A FED CUT MEANS FOR YOUR MORTGAGE RATE? CLICK AND LISTEN BELOW ITS NOT WHAT YOU MIGHT THINK...
Thursday, January 24, 2008
RUMORS GATHERING STEAM
Conforming loan limit increase rumors are gathering steam tonight as more officials are publicly hoping that the upcoming "Stimulus Package" contains and a temporary increase in conforming loan limit to $730,000.
CLICK TO LISTEN..
CLICK TO LISTEN..
Wednesday, January 23, 2008
Tuesday, January 22, 2008
Monday, January 21, 2008
Thursday, January 17, 2008
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