new-fha-loan-limits | Market Updates

Details: Category: Market Updates Market Updates; Published: 08 March 2008 08 March 2008; Hits: 16273 16273

Special Report

HUD Releases New FHA, Conforming Loan Limits

(March 6, 2008) The U.S. Department of Housing and Urban Development today published new FHA and conforming

loan limits, based on median home prices as mandated by the Economic Stimulus Act signed by President Bush in

February. 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. NAR expects the

impact 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. The new FHA loan limits can be accessed online. To find the

Fannie Mae and Freddie Mac conforming loan limits, on the HUD site choose "Fannie/Freddie" in the drop-down menu

called "Limit Type."

"We believe the economic stimulus bill will quickly have an impact on families and the nation's economy. The loan limits

for both FHA and Fannie Mae and Freddie Mac have been increased and this will act as a major stimulus for the housing

industry and for those people wishing to own a home," says Richard Gaylord, NAR president.

What This Means for Housing, REALTORS®, and the Economy

NAR research points out that increasing FHA loan limits will help an additional 138,000 Americans achieve the dream of

home ownership and will allow nearly 200,000 homeowners to refinance and potentially keep their home. In addition,

NAR believes that increasing the loan limits for Fannie Mae and Freddie Mac will bolster the housing finance market,

which continues to be severely stressed, by providing an immediate infusion of much needed liquidity to the nation’s

mortgage market.

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.

Why HUD Took This Action

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.

How HUD Calculates Its Median Home Prices

HUD median home prices differ from those published by NAR. That is because HUD uses a variety of sources and

different areas to calculate the median home price.

Who Will be Affected

Increased loan limits will have a wide impact. The added liquidity in the mortgage market will help to make mortgages

more easily available. Receiving direct helped will be borrowers in high cost areas who previously had no recourse except

high- cost jumbo loans, and those with high-cost loans who can refinance into lower interest rate loans.

Report compiled by Robert Freedman, This email address is being protected from spambots. You need JavaScript enabled to view it., 202/383-1012.

Idaho Real Estate

Idaho Real Estate values have recently been effected by the threats of property foreclosures and "short sales". When sellers are not worried about gaining any "net proceeds" from their sale, it doesn't matter to them at what price their home sells, as long as it stays out of foreclosure. There are opportunities there for investors as well as home buyers to find great deals in the market right now!

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As always, thank you for your referrals and for your return visit to www.sellidaho.com!

Don Wixom is always looking out for your next move on Idaho Real estate in the Boise ID real estate market!

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Don Wixom
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~Scott and Naomi Watson, satisfied buyers

"We were long distance buyers. We had been through some major life changes in 2005 and had first contacted Don Wixom in August of 2006. He stood by us 2 1/2 years showing us houses, driving out to houses and emailing us pictures when we were unable to go ourselves, never knowing if he actually would have gotten a sale from us and he never complained or pressured us once.
He always treated us with great respect as if we were his only customer. Don has done more for us than we would have done for ourselves. He gave us great advice. He was always learning what it was that we were looking for. As our needs changed midway through our searching he adjusted to them.
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When buying or selling in Idaho we would never consider anyone but Don Wixom. He stayed with us for the long haul and we will stay with him."
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