High Cost Area Loan Limits Extended Through 2011
Posted by Benjamin Dona on Tuesday, November 16th, 2010 at 6:22pm.
Federal lawmakers recently voted to keep the maximum size of loans guaranteed by Fannie Mae, Freddie Mac and FHA for high-cost areas at their current levels ($729,750 and $625,000). President Obama finally signed the legislation, thereby extending the loan limit through 2011.
The provision means homebuyers and homeowners in expensive housing markets like California, New York, Alaska and Hawaii will continue to get a break on interest rates when they purchase or refinance. Conforming loans come with cheaper interest rates versus non-conforming or so called "jumbo" mortgages, because they are backed by the government lending entities.
While most areas will remain at the $417,000 maximum loan amount, it will continue to make a huge difference in the various high cost areas that exist around the country.
For more detailed information: Congress Extends Loan Limits
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Share2 Responses to "High Cost Area Loan Limits Extended Through 2011"
Well, it's good to see that some people are seeing some type of relief during these hard times. I just hope that people in cheaper housing markets can eventually get some relief too.
Posted on Thursday, November 18th, 2010 at 3:54pm.
Alright! This is good news, I am going to look into this and find out exactly which areas are benifiting. Here in Austin, anything over $600k is considered the luxury market.
Posted on Wednesday, December 22nd, 2010 at 7:35am.