Everything old is new again.
If you live long enough you will see styles come and go.
What's in goes out, then comes back again. It seems that true in real estate as well. Conforming Loan Limits Are Above $700,000 Once Again!
Conforming mortgages are limited by loan size, based on "typical" housing costs around the country. The current conforming limit on a single-unit property is $417,000.
In 2008, as part of the Economic Stimulus Act of 2008, Congress authorized conforming loan limits increases in "high-cost" areas around the country. In Los Angeles County, for example, a mortgage could be as large as $729,750 and still be considered "conforming".
Those temporary increases rolled back effective January 1, 2009, to a maximum of $625,500.
However, as part of the American Recovery and Reinvestment Act of 2009 signed into law this week, conforming loan limits in high-cost areas have been returned to their elevated levels of 2008.
Changes to conforming loan limits impact everyone with a stake in real estate, even if their neighborhoods are not considered "high-cost". This is because conforming mortgages offer the widest selection of home loan products, and often at the lowest rates. The widespread availability of conforming mortgages helps to support home sales nationwide as well as providing ample refinancing options for people that need it.
Lenders have yet to pick up the change, but are expected to shortly. Once they do, more homeowners will be eligible for cheap home financing.
To lookup your neighborhood's conforming loan limits, visit the HUD Web site. Or, if you have specific questions related to your home or an upcoming purchase, contact me directly anytime.
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I love the picture !... brings back memories how could we dress that way
Shameca: Oh yes . . .disco, platform shoes, and hair rakes --- These are great memories. It will be interesting to see how much impact the increase in limits will make. I am very optimistic about our future. Thanks for the great information.
Shameca: Oh yes . . .disco, platform shoes, and hair rakes --- These are great memories. It will be interesting to see how much impact the increase in limits will make. I am very optimistic about our future. Thanks for the great information.
Gwen- It should make a huge difference to those purchased or trying to refinance larger home. Rates are heading towards all time lows again and we are all on the look out for the infamous 4.5% interest rate. If that happens it will make a huge difference in payments for anyone with loan amounts above $400,000.
Lynn- Thanks for stopping by. I thought people would get a kick out of that picture.
Lets hope the 100% financing does NOT make a comeback. Bell bottoms were also no attractive thing either.
I've been saving my Afro wig and my bell bottoms hoping that history would repeat itself while I'm still alive -- NOT!
The newspaper down here picked up on the higher limits, too.
If your post is the start of a new wave of disco.... You really don't want the wrath of Jim coming down on you -- LOL.
Jim- Don't make me start a soul train line...Go Jim GO Jim...!