Monday, October 4, 2010

Government Regulated Conforming Loan Limits Extended

President Obama signed a resolution last week extending through fiscal year 2011 the current conforming loan limit of $729,750 for high-cost areas (including many in California) with same limits also extended to loans insured by FHA. 

conforming loan limits extendedThis is a good thing for home owners, sellers and buyers. 

The California Association of REALTORs and the NATIONAL ASSOCIATION OF REALTORS®(NAR) have long advocated making permanent higher conforming loan limits. 

A provision of the U.S. Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits from $417,000 to $729,750 in high-cost areas and extending the limits through 2009. 

This recent action is to extend higher conforming loan limits for Fannie, Freddie, and FHA loans through September 30, 2011.  Fannie mae and Freddie Mac

The conforming loan limit determines the maximum size of a mortgage that US government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac can buy or "guarantee." 

Non-conforming or "jumbo loans" usually have higher mortgage interest rates than conforming loans, which increases monthly payments.

govt conforming loansSince government lending situations are dominating the market for home loans, and because good lending rates are vital to a healthy market, let's get Congress to make these higher loan limits permanent. 

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Harrison K. Long - Business Solutions and Advisory, REALTOR® and broker associate, Coldwell Banker Residential Brokerage - 949-854-7747  -  CA DRE 01410855 -    www.LiveAtNewportBeach.com  -  www.NewportCoastLive.com   -  www.CoastLivinghomes.com  -  www.OCHomeValueGuide.comwww.LiveAtIrvine.com  -  www.ExploreOCHomes.com  -  www.LiveAtOrangeCounty.com -

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