A little less excitement over jumbo/conforming loan limit changes as the reality drags on. I have heard of buyers trying to delay close of escrow to wait for the new limits, but we still really do not know how its going to look. But I do still expect it to offer some significant help to some people in the 417-729k range, especially where equity is below 20%
From A Colleague:
During a recent teleconference with the U.S. Department of Housing and Urban Development (“HUD”), NAMB learned that HUD plans to publish the new FHA loan limits in a Mortgagee Letter to be issued during the first week of March. HUD will publish separate lists for the FHA program and the GSEs. Additionally, HUD will be recalculating the median home prices which are used to calculate the loan limits. The new loan limits will be based on 125% of the median home price in counties across the country, and will be capped at $729,750. The floor for FHA loans will be raised from $201,060 to $271,050, and originators can begin processing applications now for any loan that was assigned an FHA case number after February 13th (the date the bill was enacted). These changes are a result of the Economic Stimulus Package signed by Pres Bush on February 13th, and will expire after one year. However, HUD officials participating on the teleconference indicated that more comprehensive FHA reform should be moving through Congress in the coming weeks.
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About Me
- john
- As a Certified Mortgage Planning Specialist (CMPS) with extensive experience in the mortgage industry, I specialize in helping my clients find, structure and manage mortgage debt as one piece of a larger financial strategy. I provide my clients with detailed home loan and debt structuring guidance that compliments their long term financial objectives, including college savings, retirement planning and other investment goals. With an understanding of financial planning concepts that relate to taxation, investment strategy, and estate planning, I work to create a personal strategic mortgage solution for my clients’ diverse financial needs. I collaborate with advisors in other financial fields, and introduce other specialists for guidance as needed. The ability to assess and advise on all aspects of a client’s financial situation can minimize financing costs and tax exposure while building net worth – a benefit often missed when focusing on home loans exclusively.