It's been a while since I have posted, so I'd better catch up with the latest and greatest news.
Most everyone currently interested in buying a home knows about the government's recent stimulus package that includes a temporary (until December 31, 2008) increased limit for conforming loans, but if you are not sure exactly was this means or want to hear about it straight from the horse's mouth, here's two links from FannieMae:
- http://www.fanniemae.com/media/statements/2008/030608.jhtml?p=Media&s=Statements
- https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0805.pdf
So what does all this mean? It affects buyers and current homeowners in the following ways:
- Between March 1, 2008 and December 31, 2008,
- buyers can borrow more money at a lower rate or
- current homeowners can refinance at a lower rate.
This adjustment to the conforming loan limit reflects the increase in the cost of housing over the last few years which kept many new home buyers out of the market and began to make it difficult for some homeowners (those who most likely bought at the height of the market and/or who had ARM loans that were too difficult to pay).
So this is the year to buy! Prices are low because of saturated markets and it is easier to get loans for the houses in major metropolitan areas such as DC & LA.
And with the loan limit increase set to end 12/31/08, there is still time for people who need a half a year to clean up their credit before buying. So anyone who is considering buying a home should contact a Realtor and mortgage lender as soon as possible to see what is possible in 2008.
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