Conforming and FHA Limits Boosted: President Bush Signs H.R. 5140
President Bush on February 13, 2008 signed H.R. 5140, making official a temporary boost to both conforming and FHA loan limits. The new law boosts the Fannie Mae and Freddie Mac conforming loan limit to as much as $729,750 through the end of this year, and also raises FHA lending limits to the same level for high-cost areas.
To recap, Fannie and Freddie have held a conforming loan limit (as determined OFHEO) of $417,000 and financing above that in recent months have seen significant rate increases (more than 1%), making jumbo loans virtually unaffordable.
Get the full details of H.R. 5140, the Economic Stimulus Act of 2008 here
The U.S. Department of Housing and Urban Development now has 30 days to publish a database of house prices that will be essential in determining which markets get access to the new ‘jumbo conforming' or ‘expanded FHA' loan products.
Visit HUD for housing and community updates
It will be interesting to see what unfolds in the next month. Increasing conforming and FHA loan limitations will provide more options to those seeking affordable principal and interest payments for their purchase or refinance transaction.
;)
;)
