Attention Californian's! Yes, the stimulus package was approved and became law! Fannie Mae and Freddie Mac can know gaurantee loans up to 125 percent of each area's median, with a minimum o $417,000 and a maximum of $729,950 for most bay area counties except Sonoma and Solano which have lower limits - Sonoma ($662,500) and Solano ($557,500). The old limit was $417,000
Under these new guidelines, FHA program loans will once again be the impetus to which first time buyers will use to acquire their first home. What I like about it is that the guidelines for FHA loans make it easier to acquire loans with zero or little down and because the programs are federally insured, banks will offer lower rates which benefits first time buyers and even those wanting to convert their large jumbo loans to conventional loans.
Now couple this with the high inventory of homes and presto! -- Buyers are in the drivers seat! More choices in affordable homes, seller and developer's are offering incentives and discounts to the buying public; what more can you ask? So if you're a buyer, what are your next steps?
Set yourself up. Get up to speed on the market and then get pre-qualified or pre-approved to find out how much home you can buy. Understand the process of buying and connect with licensed realtor professionals who can guide you through the buying processes.
If you need free information and resources, go to http://www.freeinfo-reports.com/ Everything you need to get started is available and free. You can even search the Multiple Listing Service for homes around the bay area.
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