Over the last few years, the government has funded mortgages as large as $729,750 in high-cost areas throughout the country. Those loan limits were temporarily increased because the economy was struggling and many lenders would have refused to make those loans without the government covering the risk of default.
But now those loan limits are due to expire in just a few short months, on September 30, 2011.
So, why is this a big deal?
Mortgage rates are typically much lower when they are supplied through Fannie Mae and Freddie Mac. When these loans are no longer allowed under Fannie Mae and Freddie Mac, the loans will be considered non conforming (Jumbo) loans, and these usually have a much higher rate because they will be backed by private investors and not Fannie Mae or Freddie Mac.
The bottom line is this: If you are looking to finance a large loan through the government, you need to act quickly before those loan limits are reduced. Get in now or you could be paying higher rates.
Give me a call if you would like more information. I'm happy to answer any questions you have and do what I can to help you secure the home of your dreams.
Jerry Wright MLO 181458
425-238-2095
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