A bipartisan congressional committee agreed on a measure that would restore FHA loan limits to $729,750 in certain “high cost” areas. The bill is not yet law, since it has not passes the full congressional body. The jumbo loan limit went down to $625,500 at the end of October 2011. If it becomes law, will restore the maximum FHA loan size at $729,750 through 2013. Although the Senate approved measures that would restore high balance loan limits for Fannie Mae and Freddie Mac to $729,750, this measure was rejected by the House, and it is expected that upper-end limits for the GSEs will remain at $625,500.
On the Mid-Peninsula many buyer and re-financing loans are jumbos due to the cost of housing. Restoring the limit will help the $800,000 plus market for buyer’s with a 20% down payment.
UPDATE…LATE THIS EVENING THE SENATE PASSED THE BILL TO INCREASE LOAN LIMITS
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