While the National Association of Home Builders (NAHB) has estimated that mortgages on 3 million additional homes will be eligible for purchase by Fannie Mae and Freddie Mac others estimate that it will be half that amount. However, there will be several other counties across the country that do no necessarily qualify for the maximum limit but may still see an increase above the current $417,000 limit.
The changes to the FHA mortgage limits will have an even greater impact. All counties, regardless of median home price, will have a floor of at least $271,050 – up from $200,160. And, at least 85% of the 3,300 counties in the U.S. have median home prices high enough to result in an increase to the maximum FHA mortgage limit.
These changes may not help everyone, but they are not intended to. The reason for these increases is to increase the liquidity (availability and accessibility of money for mortgages) in the mortgage market to help repair the damage done by the sub prime mortgage mess and the slumping housing industry.
Keep checking back for the actual loan limits in your area – they should be available in the first half of March.
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