Buyers who are shopping for a home right now in high-cost areas must close their home loan (with a maximum balance of $729,750) by September 30, 2011, to take advantage of low conforming loan rates. After the deadline, high-balance loans will once again be classified as “jumbo” and carry a higher interest rate. To determine the conforming loan limit by county, your customers can click here to reach the Department of Housing and Urban Development’s loan limit search tool. https://entp.hud.gov/idapp/html/hicostlook.cfm
The Housing and Economic Recovery Act of 2008 raised the maximum conforming loan limit in the contiguous United States, the District of Columbia and Puerto Rico to $729,750. Alaska, Guam and the U.S. Virgin Islands have a higher high-cost conforming loan limit of $938,250. With historically low interest rates, a large available inventory and home affordability at its best level in 40 years, NOW is the time to buy! For buyers in high-cost areas of the country, a further advantage is higher conforming loan limits that avoid a higher interest jumbo loan.
Deadline for closing loans under the $729,750 maximum balance is September 30, 2011.