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Home Loans
FHA Increases Loan Limits Through 12/31/08
Pursuant to the Economic Stimulus Act of 2008, the Federal Housing Administration (FHA) has increased the limit on the loans it will insure up to 125% of the area median housing price in areas where the median is between $271,050 and$729,750. These limits will remain in effect until December 31, 2008. Beginning January 1, 2009, the loan limits will return to the previous limit of $362,790.
The new FHA loan limits are based on the county in which the property is located. The FHA loan limit increase that will be in effect in Orange County through December 31, 2008, is $729,750 for a single-family residence.
Jumbo Loans
A “Jumbo Loan” is a loan for an amount that exceeds the FHA loan limit. As discussed above, the FHA loan limit in Orange County will be $729,750 through December 31, 2008. Any loan for an amount that exceeds this limit will be classified as a “Jumbo Loan”. Jumbo loans must be acquired through banks or other private financing sources, without FHA assistance. As a result, the interest rates on Jumbo Loans tend to be higher than loans that fall within the FHA limits.
If you are thinking about refinancing your Jumbo Loan, now is the time to act. You will want to take advantage of the higher FHA loan limits before they expire on December 31.
Call us now at 1-(866) 570-9488 to secure a new Jumbo Loan or to refinance the Jumbo Loan you already have. Not sure what type of loan you need or whether it makes sense for you to refinance your existing loan, give us a call we’re here to help!
Conforming Loans
A “Conforming Loan” is a loan for an amount that is equal to or less than the FHA loan limit that complies with the guidelines set out by Fannie Mae and/or Freddie Mac. Conforming loans are desirable because they generally have a lower interest rate and are easier to obtain than non-conforming loans.
Need a Loan?
Looking for a lender for your new loan? Give O.C. Real Estate Advisors a call and we’ll find you a loan that is right for you. Call us now at 1-(866) 570-9488!
