New Outer Banks Conforming Loan Limits

The long wait is over - we finally know the new conforming loan limits on the Outer Banks.  Here is what we know.

HUD (FHA Loans) and OFHEO (Fannie and Freddie loans) have published their new loan limits for the remainder of 2008. 

• Dare County - both limits were raised to $ 460,000.  This only applies for primary residences.  Sorry but no help for that vacation home or investment property.
• Currituck County - both limits were raised to $ 428,750. 
• The shocker to say the least was Elizabeth City - raised to $ 729,750.  Someone was asleep at the wheel.  Don't look for that number to stick.

No other counties for Fannie and Freddie were affected in North Carolina. 

So what does this all mean - not much.  Conforming limits have been at $ 417,000 for some time and now they have slightly increased (except for Elizabeth City) through the end of 2008.  The good news - there are only 5 properties today in Elizabeth City listed over $ 729,500 - the world is your oyster.  My guess is it will take at least sixty days for lenders to program their systems once the dust settles.

Update:  I have been reading some differing opinions on second home and investment property eligibility.  Looks like details will be released on or before the 17th of this month. 

Update 2:  I did a little more research and found the truth according to Fannie.  Second Homes and Investment Properties are allowed with the new conforming loan limits.  The changes will not help those that want to pull some of the equity out of their home.  If you read the guidelines and summary, the loan only allows a 60% loan to value ratio.  That means you can only borrow 60% of the value of your home.  More updates to follow.

Comments

[Bill Holt]

Ronnie,

We cannot be more thankful to you for keeping us in the loop. It is helpful to read this and not have to make a number of more calls to get our curiosity satisfied.

I guess this is like a " little sumthin' - sumthin' " from the Federallies. I cannot help but think, as you indicated, it will be only a little nudge.

I believe this is a time we all need to adjust - not just the Real Estate Market! We, as consumers, cannot expect anyone to get the mop out for tears of pain we have mostly brought unto ourselves.

Just becasue we wanted to go on a fancy vacation, pay for college, buy that fancy ride (and get a title because our house financed it), or bought this or that on a credit card only to have to feel the need to lower the rate by taking out a second loan on the (supposed) increase in the value of our homes and pay these things off... leaving no equity at home!

We knew the threat was there. We knew we told the bank we made ($$) on that stated loan application. We signed that 4506 Stating we authorize the lender to contact the IRS and request copies of the 'Truth' - our Tax Returns.

It is time we suck it up and write checks on our present money and focus on service and hard work to make the money to protect our homes from eminent reposessions. There is no one to cover our back sides. We are Americans... we make our choices and our beds... it is time to sleep with them!

I for one am sleeping at night and continue to work hard long and smart hours to help people with these problems... it is like a work out. We have to get educated and remember and learn from our mistakes!

I only hope I, and many others, take this change to heart and truly learn.

Keep you thoughts coming! Keep on Keeping us Informed!

Bill Holt - http://obxneighborhood.com - Accredited Consultant