Freddie & Fannie Los Angeles County conforming loan limits set to decrease
Remember my May entry regarding the Freddie and Fannie increased limits on California conforming loans? Under the current legislation the conforming loan limits will be reduced from $729,750 to $625,500 by January 1, 2009. After this scheduled change, interest rates will be higher for loans over $625,500, if this impacts your situation, you may want to take advantage of the existing loan limits before the January 1st deadline.
This is not good news, and may further slow the market recovery as financing for loan amounts over $625,500 (jumbo) will likely be more expensive. Maybe the powers that be, will rethink this decrease and get these current limits extended.
Interest rates continue to be favorable; plenty of home buyers are qualifying for loans. Potential home buyers with good credit, verifiable income and down payments as low as 3% are obtaining loans.
This is not good news, and may further slow the market recovery as financing for loan amounts over $625,500 (jumbo) will likely be more expensive. Maybe the powers that be, will rethink this decrease and get these current limits extended.
Interest rates continue to be favorable; plenty of home buyers are qualifying for loans. Potential home buyers with good credit, verifiable income and down payments as low as 3% are obtaining loans.
Posted by Phyllis Harb at 10/18/2008 2:51 AM 
Categories: Interest Rates, Lenders, A Buyer's Perspective
Categories: Interest Rates, Lenders, A Buyer's Perspective
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2/18/2009 9:29 AM
Los Angeles Real Estate Blog wrote:
In the not too distant future children across American will need to remember that the American Recovery Act was enacted in 2009. The legislation resets the conforming loan limit cap at $729,750, up from $625,500 and reinstates these 2008 loan limits through Dec. 31, 2009. The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Homebuyers ...
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