On February 13th, 2008 the President signed into law the Economic Stimulus Act of 2008, or as it was also known; HR 5140
While this package contained verbiage about tax rebate checks the important to most people was the portion that detailed the increase to the maximum conforming limit that the two main GSE's, Fannie Mae and Freddie Mac.
The old limit was $417,000.
The new limit is up to $729,750
"So what's my rate today for my $650,000 conforming loan?"
Not so fast. Did you notice the "up to" ? You see, the new limit is based on the median home prices for each MSA (metropolitan statistical area). It isn't a blank, across the board increase. HUD may take 30 or so days to do this.
Once HUD does their thing, Fannie and Freddie can then do their thing, they need to update the guidelines (rules). Guidelines determine what loans an underwriter approves and what they turn down.
So the Law is in place today but it may be tax day (April 15th) before all the details are hammered out.
Patience is a virtue...
You're right...I hadn't noticed that they said "up to" thanks for pointing this out!
Bob Mitchell
ValueList Real Estate Services, Inc.
Thanks Mike, didn't realize this but it makes sense. Let's hope it is by April.
Patience?? What the heck is that?
Mike,
It will be interesting to see where my county's conforming loan limit comes out. We are wayyy under the median priced homes for the rest of California. I hope this new law perks up the economy, but sadly, most of the experts say it won't have much of an impact.
My tattoo artist was asking me about this today. Go figure! (Yes, I was getting a tattoo. Can you say "mid-life crisis?") I think I'll send him a link to your post.