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Double Bubble - Your Loan is Approved

Isn't the potential of recession wonderful. The new savior for the economy is the increase of the FHA approved mortgage limit to $729,750. Now Fannie Mae, Freddie Maccan increase purchases to this amount, not yet. Wait until Spring.

Now people who can not afford the present ceiling will now be able to not afford the new ceiling with only 3% down. Yeah! This is great because we collect our commission at closing.

What's wrong with this picture? Nothing has changed. Only the default limit has been raised.

Posted by David Spencer Chicago Metro Real Estate on 01/25/2008 07:09 PM

Comments (3)

fha loan limits, fha, freddie mac, fannie mae, real estate defaults, increase in loan ceilings

3 Comments on Double Bubble - Your Loan is Approved

Well that certainly is a different take on the news. I was very pleased to hear about the increased limits for the FHA financing. It hasn't been used in our market for some time because there were other programs that were better in the lower end price range. This is good financing for move up buyers who can stimulate our economy! Just think of the folks who have been in their home for years, want to move up and rent out their current home. Sounds pretty good to me, but then I think the glass is half full anyway!

01/25/2008 07:29 PM

by Linda Sanderson (Coldwell Banker Solano Pacific)

David,

Isn't it amazing "The More Things Change....The More They Stay The Same".

01/25/2008 07:50 PM

by Reuel Grierson (The Millworks)

You now have PMI replaced by MIP and can't be removed until you reach 50% L2V. The people moving up under this scenario need to crank out equity cash under more stringent quidelines and then collect rent to cover this nut if they can't sell it.

01/28/2008 02:34 PM

by David Spencer & Assoc., Broker & Lic. Instr. CE and Pre-Lic.

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