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.