Good News for Buyers and Sellers: March 6, 2008I know you’ve all been waiting for some relief to our current market conditions, and it arrived today: the new FHA and Fannie Mae- Freddie Mac conforming loan limits have been released by the U.S. Department of Housing and Urban Development. To find out the new limits in your area, simply click on this link: https://entp.hud.gov/idapp/html/hicostlook.cfm, which will take you to the “mortgage limits” page at the HUD web site. On that page, enter your state and county information, chose the type of loan from the “Limit Type” drop-down box (FHA Forward, Fannie/Freddie or HECM). [Note: FHA Forward is what HUD is calling the temporary FHA loan limit.] Then click the “send” button at the bottom of the page. On the results page, you’ll see the new loan limit for the type of loan you selected for your area. You can also find a county-by-county listing of the new FHA and Fannie Mae-Freddie Mac loan limits at REALTOR.org by following this link:
http://www.realtor.org/GAPublic.nsf/files/chart_hud_loan_limits_08.pdf/$FILE/chart_hud_loan_limits_08.pdf The new loan limits for FHA and Fannie Mae and Freddie Mac are now calculated at 125 percent of the HUD published median prices, with a floor of $271,050 and $417,000, respectively, not to exceed $729,750.We expect the impact of these loan limit increases on the housing market to be significant because of the infusion of capital into the mortgage market, which should result in lower interest rates across the board. In addition, there will be a direct impact on high-cost areas that previously required borrowers to take out costlier jumbo mortgages.

An economic impact study conducted by NAR in January 2008 estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated, housing inventory would be reduced and home prices would be strengthened by two to three percentage points.

HUD was mandated in the Economic Stimulus Act to publish new loan limits within 30 days of the bill’s signing by President Bush on February 13. This is going to stimulate the lower end and in many Communities that crucial move up market that allows the log jam of home equity to get moving once again. I strongly urge any of you that may have been denied access to credit to come back to the table and meet with us and one of our preferred Lenders to get things moving again.

There has never been a better time to buy in recent memory. Rates are Great and now we have this new Loan Limit increase and access to funds! Prices…well prices are off the hook and we have some awesome buys for people right now!

Call us and lets take advantage of this Market together!

Best wishes;

Dirk Knudsen

Re\Max Metro

503-799-8383

This entry was posted on Thursday, March 6th, 2008 at 3:52 pm and is filed under NWHomeCenterNews, PDX Housing Trends, BUYER's Info. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.