Breakinng News! Loan Limits To Be Extended Through 2010

Posted Oct 30, 2009 @ 1:08 pm, Viewed by 232 Visitors, Read 238 Times.

Yesterday, Congress agreed to extend the temporary loan limits for another year. Last year, conforming loan limits were increased- depending on area- from $417,000 to a maximum of $729,750 in an effort to stimulate the real estate market and allow many home owners to refinance at lower rates. Loan amounts up to $729,750 are still based on conventional rates with only nominal "high balance" add on to the rate. Loan amounts above $729,750 are considered to be true jumbo loans and those rates are at least 1% higher and the minimum down payment requirement averages 25%.

The limit increase also applies to FHA loans, which have become a preferred alternative to Fannie Mae and Freddie Mac loans because of less stringent qualification guidelines. Although the temporary increase was due to expire at the end of this year, the higher limits will remain in place through the end of 2010 once the President signs the extension into law.

Mark Zaidan,Licensed Mortgage Lender

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Mark Zaidan

Mark Zaidan Mark Zaidan came to mortgage banking from a journalism and advertising background. He previously worked with The Washington Times International Reports as the Director of International Projects. Read More

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