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| NEW JUMBO CONFORMING/FHA PROGRAMS OVERVIEW |
Do you qualify for a better rate?
In response to the recently enacted Economic Stimulus Act of 2008, we are temporarily increasing the "conforming loan limit" from $417,000 to as high as $729,750 in specified areas: and temporarily increasing the size of loans the Federal Housing Administration (FHA) can insure from $362,000 to as high as $729,750 in specified areas.
If you’re looking to purchase or refinance home in a "high-cost region," this is great news. These temporary increases could help you avoid the higher interest rates associated with "non-conforming" or jumbo loans. Although these new limits only apply until the end of 2008, the legislation does not exclude the refinancing of any past mortgages into these new "conforming loans." That means, if you qualify, you can take advantage of the new limits no matter how many years have passed since you obtained your mortgage.
In addition, we will also be introducing a new cash-out program that would allow loan-to-value ratio up to 95%, so homeowners who are facing declining home prices can still consolidate their home mortgages and other liabilities into one secured fixed rate loan. Give us call today or apply online if you might benefit from this new legislation.
Do you live in a High-Cost Region?
A high-cost region is typically determined by the median value of its homes. The median value is the specific price that is halfway between the least expensive and most expensive home sold in an area over a given period of time. Do not confuse this with the average home price. The median home price is the price at which half of all buyers bought more expensive homes and half of all buyers bought less expensive homes.
If that sounds confusing, don't worry. It is the responsibility of the Department of Housing and Urban Development (HUD) to determine. Click here to find out.
Contact our helpful loan consultants today to find out more what these new Conforming and FHA programs can do for you to improve your financial situation. These great programs are not going to be around forever so take advantage of them while they last.
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