The government is proposing raising the limit of the conforming loans size on agency eligible home to 700 or 750 thousand dollars as part of their economic stimulus package.:

The governments proposed economic stimulus package including rebates for almost everyone also includes an initiative to raise the present conforming loan limit to help home owners with jumbo loans. The conforming loan limit, which applies to agency eligible loans underwritten and securitized through agencies such as Fannie Mae and Freddie Mac has been set at $417,000 for the past two years. With the dramatic shift in the credit markets, most home owners with jumbo loans have found themselves priced out of the market, even with the recent drop in mortgage rates and not able to refinance into a lower fixed rate mortgage. This proposed legislation would be a great boost to this segment of the market and helpful in beginning the fix of the housing industry. One major catch with raising the limit for the agency loans for individual who have jumbo loans is that they will need to be able to fully document their income as Fannie Mae and Freddie Mac do not offer stated income or reduced documentation loans. ©LowRateMortgage.com 1-25-2008

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