FHA & Conforming Loan Limit Increase on the way to help Real Estate Market-

FHA & Conforming Loan Limit Increase on the way to help Real Estate Market-

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Washington reached a decision on an economic stimulus package to spur growth in the economy and come to the aid of the Real Estate Market. Reaching a bipartisan decision Thursday House leaders have decided to allow government sponsored Fannie Mae and Freddie Mac to buy mortgages as much as 75 percent more expensive than the current $417,000 loan limit.  The mortgage purchasers would be allowed to buy loans up to $730,000 which would help the high cost areas of California and New York.  The Senate and White House still must sign off on the proposed stimulus plan, which also includes tax rebates for Americans.

 

The same limits would also apply for loans backed by the FHA which insure loans made to borrowers with poor credit, though the change would be permanent for FHA-backed loans, which had been capped at $367,000.

I will keep you updated on this exciting piece of news. Hopefully we will see some progress as early as mid-February.

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