In interesting news yesterday - the Senate voted 81-16 to approve an
amended version of the Economic Stimulus Plan. The Bill will now go back to
the floor of the House for approval of their amendments. One provision that is
pertinent to mortgage lending states that a loan originated between July 1, 2007 and December 31, 2008
may be purchased by Fannie and Freddie, as long as the loan amount does not
exceed the higher of $417,000 OR 125% of what HUD determines to be the area
median home price, with a maximum cap of $729,750. This will allow some loan
amounts higher than $417,000 to have significantly better pricing, at least for a
limited time frame.
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