[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)