Califonia Homeowners Relief from Increased Maximum Conforming Loan Limits
The Economic Stimulus Package approved earlier this year by Congress calls a for temporary increases in conforming and FHA loan limits. This will allow troubled borrowers to refinance out higher priced jumbo loans and make it easier for many new buyers to qualify for mortgages in areas of higher cost real estate, particularly in California where home prices remain among the highest in the nation. This increase will make a California mortgage easier through the end of the year.
With this relief, many buyers in California are able to finance Jumbo loans sized loans as regular conventional loans. A jumbo loan, or non-conforming loan, is simply a loan that exceeds the conforming loan limits. Because Fannie Mae and Freddie Mac do not buy these loans, the secondary market for jumbo loans is less competitive, and as a consequence, the interest rates for these loans are higher. The mortgage meltdown of the past year has been especially hard on Jumbo loans with causing rates to spike even for those borrowers with superior credit. Relief is here for home owners in San Francisco refinance needing options.
The maximum for temporary conforming loan limits, which apply to loans originated in the period between July 1, 2007 and December 31, 2008, are as high as $729,750 for one-unit homes in the continental United States. Two, three and four-unit homes have higher limits as well.
To view a list of the new FHA Mortgage Limits by county, go to: FHA Loan Limits by County.
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