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Courtesy of Tory Tarsitano, CRMS - Capital Financial Bancorp, Inc. The higher home loan limits currently in place are expected to stick throughout 2010, according to National Mortgage News.
The Obama Administration reportedly supports an extension of the current enhanced loan limits for Fannie Mae, Freddie Mac, and FHA loans.
The maximum conforming jumbo loan limit of $729,750 (in the nation’s most expensive counties) is set to expire on December 31, at which point it would drop to $625,500 per the Economic Stimulus Act of 2008.
The true current conforming loan limit is $417,000 for condos and single-family residences.
Earlier this week, several agencies called on the Senate to move swiftly in dealing with the loan limits, as lenders were uncertain whether to approve such loans pending the extension.
Homebuyer Tax Credit Extension
Senate leaders have also agreed on extending the $8,000 first-time homebuyer tax credit, as well as a $6,500 tax credit for so-called “move-up buyers.”
The tax credit would be extended from its current expiration date of November 30 through to April 30, 2010 and give home buyers with a binding contract an extra 60 days to close.
The first-time homebuyer tax credit extension also comes with higher income eligibility limits, $125,000 for single filers and $225,000 for joint filers, up from $75,000 and $150,000, respectively.
The “move-up tax credit” applies to current homeowners who have used their current property as a primary residence for five of the previous eight years.
FHA news... Per the WSJ, the FHA expects defaults on 24 percent of all loans insured in 2007 and 20 percent of those originated in 2008.
FHA’s market share, which was just 1.9 percent in the fourth quarter of 2006, climbed to nearly 25 percent in the fourth quarter of 2008.
The FHA has seen lending absolutely surge between fiscal years 2006-2009, and now they face the prospect of a capital shortfall, which could require a taxpayer bailout.
FHA loans have essentially replaced subprime and Alt-A loans, and are a popular choice for consumers because of their high loan-to-value limits and loose credit requirements.
Oh, and the FHA has apparently delayed the release of a financial audit (without explanation) due out today, per National Mortgage News.
Read entire article at the link below.
http://www.thetruthaboutmortgage.com/
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