Comments on: Will the FHA Loan Limit Rise to $635,100?

By: Bill

Bill — Fri, 12 Dec 2008 00:18:19 +0000

This is great and I hope it passes, yesterday. If you have tried to get a jumbo loan lately, you will have found that no lender will touch them. With perfect credit I was quoted 8.2% by Ditech. The best I’ve found so far is 7.5% while the prevailing conforming is 5.5%. Not only is this unfair to those of us in higher priced markets, this situation is killing these markets and values are falling, causing more foreclosures. Our market is not overpriced either. When the money was flowing, houses appreciated at a moderate rate and the jumbo rates were the same as conforming. But if these rates continue to discriminate against those above $417,000, anything above that threshold will be less desirable and we will see a shift in equity positions and more distressed homeowners and distressed banks.

By: Lillia Morales

Lillia Morales — Mon, 25 Feb 2008 20:59:14 +0000

Since it was passes on Feb 7th what would the amount be for Illinois?

By: greg

greg — Fri, 08 Feb 2008 18:34:40 +0000

you refer to the formula (on fha loans in high cost areas only)–since it did pass yesterday–what would the calculation be in arizona—-125% of the median price in maricopa county or 87% percent of the the GSE limit?

thanks

By: court

court — Tue, 29 Jan 2008 22:34:16 +0000

You know what the real drag about this is? Millions of us that live in high cost areas (like L.A. and San Diego) have been waiting for this market correction so prices will come down into an affordable range. Now this bailout comes along and props up the mid price range properties because more people can afford them again, and it bails out all the speculators from high interest jumbo loans.

What a crappy system!