LOAN CHANGES AFFECTING ALL BUYERS

The loan limit which has been in place by FHA and conventional Fannie Mae and Freddie Mac at $729,950.00 is going down to $625,500.00 around September 2011. What does this mean for home buyers? A loan being obtained will be considered JUMBO if it is higher than $625,500.00. For qualified buyers obtaining a jumbo loan will be more challenging, but there are loans out there if you have good lenders who will shop for the best financing possible. The reduction by the government will hopefully make buyers realize that it is still such a good time to buy a home due to the low interest rates and the buyers ability to borrow. Further, lenders have lowered the requirement on FICO scores on FHA loans to 580, which will allow a new pool of buyers into the real estate market. Purchasing power has never been better, and when the changes do take place with the lowering of the conforming amount, buyers will ask why did I not know this was happening and take advantage by buying a property prior to the change in September 2011.