As Congress lets the temporary increase in conforming loan limits expire October 1st, we have received word that some investors will require that all loans affected by these limits close on or before September 30, 2011. FHA Loan limit reductions will hit Massachusetts very hard. See charts for impact.
FHA loan limit reductions, effective 10/1/2011, will have a major impact on loan availability and will further depress home values if congress does not extend the loan limits.
While the Democrats and Republicans continue to bicker on Capitol Hill and point fingers about who wants to manage the budget more effectively, there is a real danger of their inability to reach compromise affecting the loan process. Should the government shutdown for any extended period of time, many of the things the borrowers take for granted in the loan process will come to a grinding halt.
First Time Home Buyer’s Mortgage Primer
Given that rates are at all time lows, many buyer’s have asked me whether first time home buyer’s can qualify for these rates. So today I want to help buyer’s understand the various programs that are available, what rates might be offered, what down payments they may need and whether mortgage insurnace would be required.