Economic Stimulus Package

Posted by Julie Olsen on Thursday, February 14th, 2008 at 10:06am.

President Bush is expected to sign the highly anticipated stimulus package. The plan now includes rebate checks for 100 million Americans and will also raise conforming loan limits in some areas for Freddie Mac, Fannie Mae, and FHA loans. Several things must occur before applications with the higher loan amounts can be accepted by any lender:

The internal impacts to Freddie, Fannie and FHA must be assessed to determine the delivery approach to mortgage lenders.
Freddie, Fannie and FHA must communicate their requirements to mortgage lenders.

HUD has 30 days from the final passage of the legislation to provide their official loan limits for all areas. Please note that the increases are a temporary solution for some high-cost areas. The higher loan limits will not be immediately available. Loan limits may be as high as $729,750; however, this amount will not be a nationwide loan limit. Increases will be made based on the median area sales prices. Specifically for Park City, we may be grouped with the Salt Lake Metropolitan Statistical Area (MSA). If that is the case, the increase in our loan limits will be much lower than the maximum $729,750. If HUD uses the MSA for coming up with the median area sales prices, our adjusted conforming loan limits may be $477,355. This is an increase from our current $417,000 conforming loan limit. Remember nothing you hear (right now) is official! The official loan limits will not be delivered by HUD until 30 days after the passage of the legislation. If you have any questions, please contact me. Karen Scott Senior Loan Officer/CPA

1755 Prospector Avenue, Suite 201 Park City, UT 84060 (Cell) 435-901-1026 (Toll free) 877-420-2999 (Office) 435-649-2999 (Fax) 435-649-2919 karen@crescentmtg.com Karen Scott is an Expert Local Park City Utah Mortgage Lender. Karen can help pre-qualify you for a loan today.

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