North Bay Real Estate Blog

Stimulus Package: Lawmakers raise lending limits

Do you qualify for a better rate?

The Economic Stimulus Act of 2008 is a $168 billion plan intended to
jumpstart the sliding U.S. economy. While a lot of media attention has been
focused on the $600-$1,200 rebate checks that millions of taxpayers will
begin receiving this spring, the new bill is also designed to help certain
"high-cost regions" of the struggling housing market by:
      Temporarily increasing the "conforming loan limit" from $417,000 to
      as high as $729,750 in specified areas; and
      Temporarily increasing the size of loans the Federal Housing
      Administration (FHA) can insure from $362,000 to as high as $729,750
      in specified areas.


If you're looking to purchase or refinance a home in a "high-cost region,"
this is great news. These temporary increases could help you avoid the
higher interest rates associated with "non-conforming," or jumbo, loans.
Although these new limits only apply until the end of 2008, the legislation
does not exclude the refinancing of any past mortgages into these new
"conforming loans." That means, if you qualify, you can take advantage of
the new limits no matter how many years have passed since you obtained your mortgage.


While this is great news, we should remind you that qualification standards
are tougher than ever. So your credit score and credit worthiness are more
important than ever. Give us a call today, and we will help guide you in the right direction.  Jerry & Amanda Arend @ 707-586-TEAM.