Many of you know that the high balance conforming loan limit decreased from $729,750 to $625,500 in January 2009. This has hurt many people whose loans fall into that bracket. But there is good news! The House and Senate passed the American Recovery and Reinvestment Act of 2009, which will temporarily revert the loan limit back to last year’s maximums. These were based per county with a maximum of $729,750.
Nothing has been implemented yet, but I wanted to share the news. Things of this nature take a while to get sorted out. What will happen now is that Fannie Mae, Freddie Mac and FHA will determine if there are any additional pricing hits and additional minimal loan requirements. Once the agencies have determined their requirements, they will let the banks know and then banks will let us know. We are talking about bureaucratic agencies, so don’t hold your breath expecting this to happen quickly. But it will happen.
