The U.S. Department of Housing and Urban Development 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.
HUD has created a new web page that provides the new conforming loan limits and limits for FHA-backed loans by state, county or metropolitan statistical area. The Web page is capable of generating tables for one or several areas.
The Office of Federal Housing Enterprise Oversight, in a press release stated that the conforming loan limit will be increased in 71 MSAs that encompass 266 counties and cities, and an additional 21 counties that are not part of an MSA. They published their own list of counties and MSAs where the conforming loan limit will be increased.
The temporary limit in Nassau, Suffolk & Queens is now $729,750. As a REALTOR® do you feel this will help homebuyers in purchasing a home, is this to their advantage?