Loading ...Conforming Loan Limit Increases in Washington DC
February 10th, 2008 by David | 1,050 views |
Email This Post
| Invite Your Friends
(7 votes, average: 5 out of 5)
Loading ...
President Bush and Congress have agreed to raise the conforming loan limit until the end of the year as part of the $160 billion Economic Stimulus Package. The increase in loan limits could also tighten lending standards for borrowers by increasing down payment amounts or credit history screening. The details will be interesting to see once they are released. Fannie and Freddie will now be able to guarantee loans of up to 125 percent of the median home price of each region. According to the Stanford Group of the National Association of Realtors, the estimated conforming loan limit for the Washington DC real estate region will increase from $417,000 to $547,500. For the official amount, the Department of Housing and Urban Development (HUD) will have 30 days in which to publish the median price of each region after President Bush signs the stimulus package.
The new conforming loan amounts will help struggling home owners refinance their jumbo loans into a safer, conventional mortgage with more favorable interest rates. This will also make housing much more affordable in higher-cost areas like Northern Virginia and the DC Metro area, and give first time home buyers looking for a 2 bedroom condo in North Arlington or townhouse in Fairfax VA a little more cash flow!
Estimated conforming loan limit increases by region:
| Metropolitan area | Median price Q3 ‘07 | Estimated new limit |
| Anaheim-Santa Ana, Calif. | $700,700 | $729,750 |
| L.A.-Long Beach-Santa Ana, Calif. | $588,400 | $729,750 |
| San Diego-Carlsbad-San Marcos, Calif. | $589,300 | $729,750 |
| San Francisco-Oakland-Fremont, Calif. | $825,400 | $729,750 |
| San Jose-Sunnyvale-Santa Clara, Calif. | $852,500 | $729,750 |
| Riverside-San Bernardino-Ontario, Calif. | $377,000 | $471,250 |
| Sacramento-Arden-Arcade-Roseville, Calif. | $335,700 | $419,625 |
| Barnstable Town, Mass. | $400,600 | $500,750 |
| Boston-Cambridge-Quincy, Mass. | $414,700 | $518,375 |
| Boulder, Colo. | $367,500 | $459,375 |
| Bridgeport-Stamford-Norwalk, Conn. | $491,100 | $613,875 |
| Miami-Fort Lauderdale-Miami Beach, Fla. | $346,800 | $433,500 |
| New York-Northern N.J.-Long Island, N.Y./N.J. | $476,100 | $595,125 |
| New York-Wayne-White Plains, N.Y. | $550,900 | $688,625 |
| Edison, N.J. | $391,800 | $489,750 |
| Nassau-Suffolk, N.Y. | $470,000 | $587,500 |
| Newark-Union, N.J./Penn. | $459,700 | $574,625 |
| Seattle-Tacoma-Bellevue, Wash. | $394,700 | $493,375 |
| Washington D.C. Arlington-Fairfax VA/MD/WV | $438,000 | $547,500 |
Source- National Association of Realtors, Stanford Group
***Update - since this article was written, the Conforming loan limit in the Washington DC region has increased more than expected to $729,750!… read more
If you enjoyed this post, make sure you subscribe to my RSS feed!
This entry was posted on Sunday, February 10th, 2008 at 7:14 am and is filed under Buying a Home, First Time Home Buyer, Home Mortgages, Loans, Real Estate Washington DC. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
February 20th, 2008 at 1:47 am
[…] the other hand, the recent increase in conforming loan and FHA loan limits should give a boost the the DC Metro area real estate market. We should see a good amount of […]
February 28th, 2008 at 10:45 pm
[…] buyers are waiting for the President’s Economic Stimulus Plan to take effect, which will increase limits for FHA loans, and allow Freddie Mac to repurchase jumbo […]