New Loan Limits To Help Buyers

New Loan Limits:

Congress has passed measures to help homebuyers and more aid may also be on the way. Here's a quick summary of the new Economic Stimulus Act of 2008, which was signed into law in February. Highlights of this bill include:

Higher FHA limits based on a 125% increase of each county's median price, with a minimum of $271,050 and a maximum of $729,750

"Jumbo-conforming" loans with higher conventional loan limits that follow the same formula as above-the ceiling limits are generally the same as FHA limits except in some lower-cost counties

Online access to the new loan limits for the entire country-Click Here to view HUD's FHA Mortgage Limits site or copy and paste the following link into your web browser: http://www.hg.srchicago.com/exchweb/bin/redir.asp?URL=https://entp.hud.gov/idapp/html/hicostlook.cfm?CFID=9244604%26CFTOKEN=30c35b1-00050057-84d9-17f3-83bf-80ff94f50000

How does this affect you? Higher conventional loan limits will allow more buyers to avoid non-conforming jumbo loans, which typically carry higher interest rates. However, keep in mind that the new "jumbo conforming" loans typically require a 10 percent down payment.

What about buyers who need a lower down payment? Golden Path Raising the FHA loan limits will allow more buyers to qualify for FHA loans. However, "going FHA" is viewed by some as a difficult process to be avoided. Fortunately, we are an approved FHA lender with deep expertise, and our dedicated team of professionals will guide your buyers through the FHA mortgage process, step-by-step.

We make it as easy and convenient as possible for buyers to enjoy the advantages of FHA financing, such as lower down payment requirements. For your convenience, we also offer sell sheets and other marketing materials to help customers understand the benefits of FHA financing. Just visit the Mortgage Resource Center at http://www.hg.srchicago.com/exchweb/bin/redir.asp?URL=http://www.C21MortgageResourceCenter.com to find these tools and more.

Congress is still working on more detailed measures aimed at helping homeowners avoid foreclosure. For more information, contact your local Century 21 Mortgage Advisor.