But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.
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FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”
Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.
If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).
