Conforming Loan Amounts Are Raised!!!
What a way to start the week! It looks like the government is continuing it’s proactive approach to help the mortgage crisis by recognizing that not just the mid to lower class consumers are suffering from ARM’S adjusting to higher interest rates. They have raised the conforming loan limits to $729,750, thus allowing consumers that have arms coming due in the higher tax brackets to get some relief. I commend the Fed’s for this recent move and it was definitely needed to help stop the madness. I have included some information on this below:
Temporary Increases in Conforming Loan Limits Coming
Last week, legislators on Capitol Hill passed what is deemed to be an "Economic Stimulus Package". An important component of the Bill - Section 2 of H.R. 5140, the Economic Stimulus Act of 2008 - directly impacts the mortgage industry by temporarily raising the conforming loan limits in high cost areas across the country.
This legislation allows increases in the loan limits from 125-175% of the median house price in the area of the property for the period 7/1/07-12/31/08, resulting in new loan limits from $417,000 to $729,750 for single family properties.
The legislation requires HUD to publish revised median house prices and principal obligation limits to implement the legislation "as soon as practicable", which should be within days/weeks after the bill is signed, expected THIS WEDNESDAY.