The Department of Housing and Urban Development (HUD) released the new FHA and GSE (Fannie/Freddie) loan limits for 2008, which is great news for current and potential homeowners across the nation. Authorized by The Economic Stimulus Act of 2008, which was signed into law on February 13, 2008, the new FHA limit is based on 125 percent increase of each county’s median home price, with a minimum of $271,050 and a maximum of $729,750. The increased Fannie Mae and Freddie Mac loan limits follow the same formula, with a minimum of $417,000 and a maximum of $729,950.
Why Should You Care? For those looking to purchase or refinance real estate in 2008, this is great news. These temporary increases could help you avoid the higher interest rates associated with non-conforming or jumbo loans, which are currently more than a point higher than conforming loans. This means many consumers who want to purchase a new home will be able to take advantage of great real estate deals and get more home for less money. In fact, many homes that you might not have been able to afford just a few years ago could now be well in within your reach, thanks to this temporary program.
These increased loan limits are also good news for those looking to refinance their expensive jumbo loan into a new “conforming loan.” In fact, the only restriction is that these increases apply only until the end of 2008. The legislation, however, does not exclude the refinancing of any past mortgages into these new “conforming loans.” That means, if you qualify, you can take advantage of the new loan limits no matter how many years have passed since you obtained your mortgage – as long as you get it done before the end of the year. Give me a call. Let’s take 10 minutes to see if you can take advantage of this new bill.
For more information, please call Heidi Rivas of Crown Home Loans at 661-287-9888 or visit her on the web at www.LoanGal.com. Heidi Rivas is the local lender Santa Clarita’s top real estate professionals recommend most! Please don’t forget to see our ad in this edition.