Big Help from Uncle Sam, We Shall See.
In case you haven't heard the news yet, part of the U.S. Federal government's economic stimulus plan includes a proposal for a temporary increase to the Fannie Mae and Freddie Mac conforming loan limits.
The current limit is at $417,000.
The proposed new limit will be $729,750.
If put into law, this will open up a big window of opportunity for those from $417,001 to $729,750 to restructure their financing into the low conforming rates that are currently available. While this will help these loans will still need to be fully documented for income during underwriting and falling home prices may affect appraised values. That might make a refinance difficult for some if their home value has dropped significantly.
This is your early heads up. More to come if and when this goes into effect.
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