The government keeps re-establishing new conforming loan limit changes, which I understand has gotten confusing! When we take into account how long it takes for all the different entities to determine their part to the solution, it can take a while for the changes to filter to consumers.
As of this date, 3/28/09, the current max loan amount for high-cost counties is still $625,500 for conventional loans. Legislation to increase it to last year’s limit of $729,750 has passed, but lenders have not yet determined underwriting guidelines or pricing hits for this loan limit. A “high balance” conventional loan up to $729,750 is not yet available, but it will be.
If you want to purchase or refinance, and your loan amount is above $625,500, jumbo loans are available at fairly competitive interest rates. But the rates are higher than high-balance conforming loans, you do not get a 30 Year Fixed option (only ARMs are offered) and 20% down payment (or equity) is the absolute minimum required.
I will let you know when conventional lenders begin to offer high-balance loans up to $729,750 for this year.
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