The President has signed the Economic Stimulus Package. This package will give temporary relief to the Jumbo market by raising conforming and FHA loan limits. The unfortunate part of this plan is that this is not a set limit nationwide.
Several steps must occur before lenders can accept applications with the higher loan amounts as defined by the bill.
- Fannie Mae, Freddie Mac, and FHA must assess their internal impacts to determine the delivery approach they will require of mortgage lenders and investors
- Fannie Mae, Freddie Mac, and FHA must communicate their requirements to the mortgage lenders and investors.
- Mortgage lenders will work to identify impacts and implement the changes as quickly as possible
These steps could take between 30 to 90 days to complete.
In the meantime Fannie Mane, Freddie Mac, and FHA will be evaluating the high cost areas around the nation and will use a calculation factor of 125% of the area median sales price. FHA has an immediate increase of the "floor" loan limit from $200,160 to $271,050 starting today!
More to follow!!!
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