New Loan Limits For Both Conventional and FHA

March 6th, 2008 Categories: FHA, Mortgage

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FHA Raises It’s Loan Limits Along with

Fannie Mae and Freddie Mac

Yesterday the limit on conforming loans were raised from $417,000 to $729,750. This can help the housing market for sure and help reduce the debt service of those that currently have loans from $417,000 to 700,000. Before anything over $417,000 was considered a jumbo loan and jumbo loans usually carry a higher interest rate.

One of the problems that came from the sub-prime debacle is the secondary market for jumbo loans, it is rapidly disappearing. Normally a jumbo loan is more risky, but $417,000 in some markets is not jumbo it is a starter home. Also what about the guy that bought a $630,000 home and put down 20%, that is $126,000 cash and a $504,000 loan. I don’t see the risk there, but because it was above the conforming limit it was.

FHA released it’s limits today. Here is a list of the Utah FHA Limits by County

This entry was posted on Thursday, March 6th, 2008 at 8:05 pm and is filed under FHA, Mortgage. 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.

New Loan Limits For Both Conventional and FHA at Sub Prime on The Finance World For News and Information Around The World On Finance said at March 6th, 2008 at 9:25 pm
[…] New Loan Limits For Both Conventional and FHA FHA Raises It’s Loan Limits Along with Fannie Mae and Freddie Mac Yesterday the li […]

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