Nov 10 2008
2009 FHA and FANNIE / FREDDIE Loan Limits
In March 2008, as a result of the Economic Stimulus Package, FHA, Fannie Mae and Freddie Mac raised their loan limits. These increases had a deadline of December 31, 2008.
The new limits were just announced for 2009.
Effective January 1, 2009:
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CLARK COUNTY FHA - $287,500 (down from $400,000)
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CLARK COUNTY FANNIE / FREDDIE - $417,000 (no change)
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NYE COUNTY FHA - $271,050 (down from $325,000)
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NYE COUNTY FANNIE / FREDDIE - $417,000 (no change)
If you have buyers looking to put down less than 10% and they are looking for a home priced over $296,000, they need to find a home quickly.
Loans must be locked by 12/13/2008 and fund by 12/31/2008. No exceptions.
Also, as a reminder, the minimum down payment on FHA loans will go up to 3.5% from its current 3% on January 1, 2009 as well.
Amoung other things the new economic stimulous package has many real estate components, including money to mortgages and to start government back asset purchases.
The government has asked the banks to slow up on foreclosures and work on and redesign the mortgages where possible. The new stimulus package also includes provisions to work on the cram down and forgiveness of debt between the banks, mortgage holders and the government.
I don’t know what that will do in the long run or if it is the right thing to do to the tax payers.
However, I guess it is something to lessen the pressure on the market.
Richard