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DEADLINE - JANUARY 1, 2009

The new Housing Bill H.R. 3221 took effect, October 1, 2008. However, it is worth taking a look at several important items that do not take affect until later dates. First, the temporary Fannie Mae, Freddie Mac and FHA maximum loan limits for Monroe Co. are currently $729,750. This limit decreases January 1, 2009 to $625,500 (based on current HUD median home prices). Let’s look at what this means for home buyers and sellers in Monroe Co.

Qualifying home buyers can currently obtain financing with as little as a 10% down payment up to a sales price of $810,833. On January 1, 2009 this will go down from $810,833 to $695,000 maximum sales price. While loan programs will still be available for 10% down payment for loan amounts on sales prices greater than $695,000, the terms and conditions are usually much more favorable with a Fannie Mae or FHA loan. The benefits consist of availability of a fixed rate mortgage and interest rates that are usually much lower than rates available from non-GSE/FHA loans.