AWESOME FHA NEWS!!! NEW HIGHER LIMITS!!!

By
Mortgage and Lending with Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL
As part of the economic stimulus package being negotiated by House Democrats
and the Treasury Department, Fannie and Freddie loan limits will increased
for one year up to $730,000. The increase will be adjusted for local markets
at 125% of local median home price. The move will significantly improve
liquidity and pricing in the jumbo market. The agreement also includes
raising the FHA loan limits to the same amount. We are trying to confirm
whether the other provisions of FHA reform will be included (such as
lowering downpayment requirements). But at a minimum, the loan limits will
be increased.

This represents an agreement in principle and must still go through the
legislative process. My best guess is that will happen sometime after the
State of the Union next week, likely progressing into early February.

This is the most significant action to date proposed by the federal
government to stabilize the housing market. Lenders One/National Alliance of
Independent Mortgage Bankers have worked hard to make this a reality and we
will continue to keep you posted on our progress.

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