HUD Releases New FHA, Conforming Loan Limits
The U.S. Department of Housing and Urban Development today published new FHA and conforming loan limits. The limits are based on median home prices as mandated by the Economic Stimulus Act signed by President Bush in February. The new loan limits for FHA and Fannie Mae and Freddie Mac are now calculated at 125% of the HUD published median prices. The will have a floor of $271,050 and $417,000 respectively, not to exceed $729,750.
The National Association of Realtors released a statement that said, in part, they expect that this will produce an infusion of capital into the mortgage markets. They further speculate that this could lead to a decrease in mortgage rates.
This will allow some borrowers to avoid the use of the costly 'jumbo' loan packages.
All of this information is good an interesting - what do you think about how this may change lending rates or help the sagging market? Do you see this helping you business significantly or not to any measurable degree?
Comments(2)