I had calls today from three Realtors about the proposed stimulus package - most were hoping that the conforming limits for Outer Banks Real Estate would be close to the $729,500 limit. What does it mean for homeowners on the Outer Banks? Probably not as much as we would all hope.
The President signed the stimulus program today. There is much speculation as to who this really helps. Most believe that it will only help a few. The program is geared towards property that is in what is considered "High Cost" areas. Even though most of us on the Outer Banks feel that Real Estate is "High Cost" - we are not. Think L.A., Las Vegas, Miami and Hawaii. The new law signed today will increase the conforming loan limits from 417,000 to 125% of the given MSA up to $729,500.
(b) Determination of Limits- The areas and area median prices used for purposes of the determinations under subsection (a) shall be the areas and area median prices used by the Secretary of Housing and Urban Development in determining the applicable limits under section 202 of this title.
FHA recently updated Dare County limits to $347,500. Typically they go by the HUD median prices - and it that is the case we will not see a significant increase if any to the conforming loan limits. What that means - if you want a loan larger than $417,000 - you will probably still be paying an additional 1% for your mortgage rate.
So what exactly IS the limit on loans that are not considered jumbo for the Outer Banks now? Is it still $417,000?
Posted by: Key | February 20, 2008 at 05:36 PM