Fannie Mae and Freddie Mac Loan Limits – Follow-Up

[As a follow-up to yesterday’s post regarding the announcement of the new FHA, Fannie Mae and Freddie Mac loan limits, I’m posting an email I received this morning from Lisa Fleck, a Senior Mortgage Planner at Indymac Bank.]

As expected Fannie and Freddie have announced the new GSE loan limits.  This program, limited to the time period between 7/1/2008 and 12/31/2008, has affected about 250 counties across the nation.  In the state of Nevada the only county impacted by this change is Douglas County with their new conforming loan limit increased to $468,750.  The conforming loan limit of $417,000 remains the same for the rest of the state.

Of course a majority of the counties in CA have been impacted with many capping out at a new conforming loan limit of $729,750.  But don’t get too excited as Fannie and Freddie are not able to lump these new “higher loans” in with the regular conforming product as investors on Wall St are balking.  Expect to see rates for the higher loan limits to be 1-2% higher that existing conforming rates.  This begs the question, since a jumbo loan (over $417K) right now prices about 1 to 1.5% higher than conforming, where is the value?

As mention in yesterday’s email I believe the truer value is in the increase in the FHA lending limit, in the case of Washoe county $403,750.  Bond programs have yet to announce their decision on loan amount increases and I am awaiting confirmation that the new FHA limits will apply to Reverse Mortgages as well.

Please stay tuned for important market updates in this volatile and shifting market.

If you know of anyone else who may be interested in receiving this information as well please let me know.

I am always available to answer any questions that you may have.

Have a great day

Lisa Fleck, C.M.P.S.
Senior Mortgage Planner
Indymac bank Retail Lending Group
5470 Kietzke Ln  Suite 210
Reno, NV  89511
775.332.1434 phone (direct)
866-481-0540 fax
lisa.fleck@imb.com
www.thefleckgroup.net

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About Guy Johnson

I am a licensed Nevada REALTOR® living and working in Reno, Nevada. Give me a call at 775-722-4011. My team and I will be happy to assist you with your real estate needs.
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3 Responses to Fannie Mae and Freddie Mac Loan Limits – Follow-Up

  1. Avatar smarten says:

    Your Lisa represents that “the conforming loan limit of $417,000 remains the same for the rest of the state” of Nevada. She then opines that “the truer value [of recently announced increased conforming loan amounts] is in the increase in the FHA lending limit, in the case of Washoe county[, to] $403,750.”

    Doesn’t Lisa’s truer value “beg the question?” Bottom line, the conforming loan amount for FNMA and Freddie Mac originations remains the same as before the recent announcement; $417,000. Given the added costs [imposed upon sellers] associated with FHA loans, why would anyone want to pursue a FHA versus FNMA/Freddie Mac loan; especially given the lower conforming loan limit?

    And just for the record, the RGJ reports this morning that only 14 California counties have qualified for the increased [$729,750] conforming loan amount. That’s 14 out of 58 counties; far less [24%] than the “majority” Lisa represents.

  2. Avatar JIm says:

    Freddie Mac and Fannie Mae loans often require Mold and Moisture Operatins and Maintenence Programs..We provide this services E-mail if you have a need .

  3. Avatar JIm says:

    Freddie Mac and Fannie Mae loans often require Mold and Moisture Operations and Maintenance Programs..We provide this services E-mail if you have a need .

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