Friday, March 14, 2008

Summit County FHA and Conforming Loan Limits raised to $729,750

Summit County FHA and Conforming Loan Limits Raised to $729,750

On March 7, 2008 the U.S. Department of Housing and Urban Development raised FHA insured and Conforming loan limits in Summit County to $729,750, from $417,000. This, in theory, means that loans in Summit County, up to $729,750, qualify for conforming interest rates as opposed to “jumbo” mortgage rates.

While the limit amounts are determined, the guidelines to qualify for these loans have not yet been released. The guidelines will determine who, where and perhaps even what types of properties will qualify for these new loan limits. We anticipate the guidelines to be released in the next week or two.

Assuming the guidelines are broad and can apply to all properties in all of Summit County, what does this mean for Summit County real estate owners and potential buyers?

First, buyers purchasing property in Summit County may be able to obtain a loan for up to $729,750, which is $312,000 higher than previously, without having to pay higher jumbo loan rates. With 20% down, a buyer can purchase a property just over $912,000 and be able to secure a Conforming mortgage. We anticipate that this will increase the amount of ready and willing buyers in Summit County.

Second, property owners who currently have a jumbo loan may be able to refinance with a conforming loan, cutting interest rate points and saving on their monthly mortgage payments.

Third, anyone thinking of upgrading to a more expensive property than they currently own may have an opportunity to lock in a lower conforming interest rate than they previously could have.

What’s the catch? 1) We don’t yet know the guideline requirements so some people and some properties may not qualify; 2) This loan limit is only good until December 31, 2008. Look for future updates from Landmark Real Estate Group, LLC when we receive more information on the loan guidelines. If you are looking to take advantage of the higher conforming loan limits in Summit County, please call Landmark Real Estate Group today for a free personalized real estate consultation.

For a table of conforming loan limits across the nation, go to https://entp.hud.gov/idapp/html/hicostlook.cfm.
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