House PASSES stimulus package!

To address the mortgage crisis, the House bill would raise the limit on Federal Housing Administration loans from $362,790 to as high as $729,750 in expensive areas, allowing more subprime mortgage holders to refinance into federally insured loans. To widen the availability of mortgages nationwide, it also would boost the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets. Those measures would expire at the end of the year.

Update on Stimulus Package - FHA / FNMA / FHLMC Limits

The stimulus package being negotiated is being hotly debated along party lines. With the Democrats pushing for almost $730,000 and the Republicans looking to limit the increase to only $625,000. While both are major increases and sorely needed the California Housing Market would be most affected by the higher limit. The issue with the higher amount for the Republican's appear to hinge on enforcing stricter government regulation of FNMA and FHMLC who both have had recent issues with accounting irregularities.

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Economic Stimulus Package to Boost Conforming and FHA Limits to $725,000

To address the mortgage crisis, the package also raises the limits on Federal Housing Administration loans and home mortgages that Fannie Mae and Freddie Mac can purchase to as high as $725,000 in high-cost areas. Those are considerable boosts over the current FHA limit of $362,000 and the $417,000 cap for Fannie Mae and Freddie Mac's loan purchases.