The Office of Federal Housing Enterprise Oversight (OFHEO) today announced it has temporarily increased limits on jumbo loans offered by government-sponsored lenders Fannie Mae and Freddie Mac from $417,000 to as high as $729,750 in fourteen counties for loans originated between July 1, 2007 and Dec. 31, 2008. Fannie and Freddie are reported to be working out new underwriting standards and expect to begin offering the new loans soon.
Also, on Wednesday, the government raised the conforming loan limit for mortgages guaranteed by the Federal Housing Administration(FHA), and has begun offering the maximum limit of $729,750 for 14 California counties(including ALAMEDA), up from $362,790, for loans originated between now and Dec. 31, 2008.
The Fed’s economic stimulus package approved earlier this year called for the temporary increases on conforming loans to allow troubled borrowers to refinance out of sub-prime loans and make it easier for many new buyers to qualify for mortgages in high-cost areas, particularly in California where they remain among the highest in the nation. (Information provided by CAR.)
Click here to view a list of the new FHA Mortgage Limits by county.
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