Increased Loan Limit programs Coming To An End

Last February, President Bush signed the Economic Stimulus Act increasing the FHA loan limit amount for borrowers. In Los Angeles and Orange Counties, the loan limits were increased to $729,750 and in the San Bernardino County area, it was increased to $500,000. Prior to this legislation, the conforming loan limit amount was $417,000. This was great news since it leveled the playing field for us Californians. It allowed us access to competitive interest rates. We should not have to pay more on our mortgage because we live in an area where the median home price is higher than most of the country. This was also wonderful news for first time home buyers who were more comfortable with obtaining a "safe" conforming loan, instead of being forced to go with a jumbo loan. As a current property owner, the legislation also allowed current homeowners to refinance at reasonable rates. However, these increased loan limit amounts are expected to expire AT THE END OF 2008 (unless the new president decides to keep them permanent...something we will have to wait and see). Please contact us today so that we may help you find you a home while these loan programs ARE STILL IN EFFECT.