Top 7 Reasons The Conforming Loan Limits Need To Be Increased Permanently
Ed Craine
July 2, 2008
The Economic Stimulus has successfully passed, and within weeks we’ll know how high the conforming loan limits will be for each Metropolitan Statistical Area (MSA). HUD is scheduled to publish these new limits by the middle of March. The new loan limits will be based upon the Median Home Value of each MSA. Although the limits will be determined soon, it will likely take lenders into the summer, before they are ready to offer these new loan products. For hundreds of thousands of homeowners and potential buyers in areas where the median home value is more than $417K, this temporary increase will bring with it some truly amazing opportunities. But, because the increase is currently only scheduled to remain in effect until the end of 2008, the potential boost it will bring not only to the housing market, but to the overall economy, will be short lived. That is, unless these increases become permanent, in which case, the entire economy stands to gain a great deal of stability.
