Just in case anyone participating in this thread doesn’t a background on where these limits stood a month ago I am posting a paragraph from an article(and not crediting it properly).The paragraph also hs some info on how the limits are typically derived when not part of a supper bubble damage control plan(sham).
“Conforming Loan Limit Unchanged In 2008
The conforming loan limit, currently $417,000, will remain unchanged in 2008, announced OFHEO director James B. Lockhart. OFHEO is the entity that regulates Fannie Mae and Freddie Mac, the government-chartered guarantors of home mortgages. Any loans above the $417,000 limit are considered “jumbo” and cannot be guaranteed by Fannie Mae and Freddie Mac, so lenders usually charge higher interest on them. This limit only applies to one-unit properties; multiple-unit properties have higher limits. Alaska, Hawaii, Guam and the U.S. Virgin Islands have higher upper limits than other states. The maximum conforming loan limit is determined by analyzing October-to-October change in the average house price, which has declined more than 3% this year. The maximum limit hasn’t changed for the last 2 years, and it probably won’t get revised upwards anytime soon. The latest NAR report says the inventory of single-family homes on the market is at the highest level in 22 years (10.8 months’ supply), which can only drive home
prices down.”
Has anyone seen how the changes will affect multiple 2-4 unit properties? Other than some advantage coming from that I can see little use for more than the old limits for the investment properties some people are talking about or that Iwoudl be concerned with unless it has to do with a big old cash out?
I am happy about the interests rate trends as a whole. But if I take any of this cheap money it won’t be to prop up the market. I’ll protect it until this manipulation has run its course and prices crash further. If they don’t I’ll consider giving it back.
