Sunday, January 27, 2008

Update on Conforming Loan Limits...

Regarding new conforming loan limits...I have heard from my go-to lending source that there is some confusion in the marketplace with regard to the increast in conforming loan limits.

"The White House might consider calling for a temporary (one year) increase in the size from $417,000 up to $729,750 on mortgages that Fannie Mae and Freddie Mac can purchase from mortgage lenders. An increase in the conforming loan limit would make it easier and less costly for borrowers in **high-cost areas to get loans because Fannie and Freddie would guarantee their purchase by investors. It appears that they are looking to only designate 12 "areas" as “high cost" areas, and there has been NO clarification on what 12 areas might be eligible for the higher conforming loan limits."

Hmm...stay tuned.

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