Fannie, Freddie, & FHA conforming loan limit extension law signed

President Obama late Friday signed a congressional resolution to extend through 2010 the current conforming loan limits of $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including many in California. The resolution was part of a broader piece of budgetary legislation that will prevent a government shutdown.

Both C.A.R. and NAR have long advocated making permanent higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits. Last week’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010.

The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, and the Federal Housing Administration (FHA) can buy or “guarantee.” Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.

Source: NAR

Advertisements

About UniqueLAHomes.com
At UniqueLAHomes.com we believe big or small that every home is unique. So if you're looking to Buy, Sell or Lease - now or in the future take a peek at our site and let us assist you in your next Real Estate endeavor.

One Response to Fannie, Freddie, & FHA conforming loan limit extension law signed

  1. robert says:

    Here is the link to the press release on The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)website from Friday, Oct. 30, 2009 http://www.car.org/newsstand/newsreleases/2010loanlimits/?version=2

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: