Monday Market Myth: Loan Limits

Myth: A home buyer who has been in contract before September 30th and has a home loan  over $729,750 will still get their government sponsored loans.

False: On October 1, 2011 the government sponsored enterprises such as FHA, Fannie Mae, and Freddie Mac lowered their home loan limits from 729,750 down to $625,500, which greatly decreased home buyers purchasing power.  Wells Fargo and Bank of America already started implementing the new loan limits a few months ago, but buyers are having a hard time finding a mortgage lender that would consider larger loans for their portfolio.  As the lending industry makes it harder to qualify for a loan, buyers are faced with more competition as the loan limits are reduced.

The new real estate trend is all about financing, financing, financing, so make sure a home buyer shops around for the best terms to purchase a home. To find a qualified and reliable lender please contact Kristen Jurevich at 831.635.6719.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s