• English
  • Español
AGENTS: Did you know you can share a personalized version of this post? Learn more!

…And the Changes Keep Coming

With an election year right around the corner, it seems obvious that the world is full of flip-floppers, so why should housing and mortgage policy-makers be any different?

  • Remember when the Federal Government was trying to ease its way out of being the dominant provider of mortgage financing (and trying to move people more into the private sector and Private Mortgage Insurance)?
  • Remember the days when government insured financing (through FHA loans) was capped at 85% of their conventional counterparts (from Fannie Mae and Freddie Mac)?
  • Then, the government recently decided to LOWER the conforming loan limits in high cost areas from $729,750 back to $625,500. The logic was sound. Home values have declined, therefore, so should conforming loan limits.

But then comes the reality that the home buyers buying between $650-750,000 are going to suffer with higher rates. How can we fix it? The flip flop. That’s how. The government’s solution…raise FHA loan limits back up. More government involvement in housing finance. None-the-less, it’s good news for a segment of the home buying population who can still enjoy great rates with as little as 3.5% as a down payment.

In the constantly changing world of mortgages, it is imperative that you work with a loan professional who knows how to properly position you, taking into consideration numerous factors – from loan program, to costs, to eligibility.

Members: Sign in now to set up your Personalized Posts & start sharing today!

Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized Posts.

2 replies

Trackbacks & Pingbacks

  1. hubblehomes says:

    […] the Changes Keep Coming http://www.kcmblog.com/2011/12/01/and-th… With an election year right around the corner, it seems obvious that the world is full of […]

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *