The President signed H.R. 5140 yesterday. This is the $168 billion Economic Stimulus Plan which was rushed through Congress. The mortgage conforming loan limits have been adjusted as part of the bill. The conforming loan limits have been raised to 125% of the median home price, the limit is not to exceed $729,750. This bill also increases the loan limit on FHA guaranteed mortgage loans.
I’ve received a few e-mails already asking what the new loan limits are in the Phoenix metro area. I don’t know. The reason is the HUD has 30 days from yesterday (February 13) to provide their official loan limits for every area. They will compute the median home price for each area and then publish an official conforming loam limit list. So, be patient. I will have that information on this blog as soon as it becomes available.
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on Feb 14th, 2008 at 9:41 am
I think everybody will want to buy in Arizonia considering the cost of homes will be less. I see Arizonia being the new Florida seriously!
on Feb 16th, 2008 at 2:04 am
Hi,
Regarding mortgages, the package will help borrowers taking loans within $417000 get an interest rate 1% lower than they used to get earlier. This is because the conforming loan limit has been raised.
Besides, there are tax rebates which if spent by consumers can boost up the economy but recent surveys show that consumers aren’t willing to spend them. Rather they intend to use the rebate for debt repayment, saving or investment purposes.
I’ve shared my thoughts on this topic at http://jessica.mortgagefit.com/2008/02/16/economic-stimulus/ . Have a look just in case you’d like to leave a comment.
Regards,
Jessica
on Feb 18th, 2008 at 9:59 am
Jessica,
I will be sure to take a look. I’ll leave my comments there…..
on Feb 18th, 2008 at 5:35 pm
Does anyone know how long it will take for lenders to start taking loans at the higher limits?
thanks