I read on Inman News that…
Yes… to as much as $729,750 in 250 counties across the U.S. for conforming loans. Fannie Mae and Freddie Mac implemented a policy change in last week™s $787 billion economic stimulus bill.
The American Recovery and Reinvestment Act H.R. 1, brings back the higher limits in place for Fannie Mae & Freddie Mac during most of 2008. This allows them to guarantee loans or buy them up to 125% of the median home price in high-cost areas.
Last year Congress instituted short term increases with the $417,000 conforming loan limit in high-cost real estate areas. The limit was brought back down to 115 percent of median house prices by a sunset provision.
Lawmakers were hoping that the secondary market for mortgage loans would have improved by now, jumbo loans are still costlier than those eligible for purchase or guarantee by Fannie Mae and Freddie Mac.
With the new stimulus bill, loan limits are to be the higher of the two, either those put in place Jan. 1st or 2008 limits. Most high-cost real estate markets are reverting back to 2008 limits. The floor for FHA loan guarantee programs was restored by the stimulus bill to to $271,050. Now the Department of Housing and Urban Development has leeway to allow FHA to guarantee loans in high cost areas of up to $729,750 just like in much of 2008.
Inman News was told by a HUD spokesman that the Department will post a list of loan limits in various real estate markets on the Web on Tuesday and that the department will also allow FHA to guarantee loans up to the $729,750 limit in high-cost areas.
Let’s check the Web on Tuesday for the list on where the Barrington, Deer Park, Long Grove, Kildeer, Schaumburg, Lake Zurich and surrounding areas limits will be.
Posted By: Julie Anne – The Julie Anne Real Estate Team at Keller Williams Success Realty
This is my interpretation of what I read, please check the source for accuracy.