Loan Limits and Revitalization Plan
BySo here is what is going on with the Revitalization plan that is going to be instituted April 1, 2008. There are a few things that have not been released as of yet, but I will put these documents from Fannie Mae AT this LINK.
So, they have deemed April 1 as the date of the kick off - April Fools Day, I’m hoping that was coincidence. But that is funny just the same.
They are going to call these Jumbo-Conforming loans. On the link you will see which counties get what limit. Through implication it is said HUD will publish an official list of areas and also limits prior to April 1, 2008. If I were to be a betting man, I would guess that Los Angeles and Ventura County will be part of the counties that are going to be labeled the "high-cost" areas.
Here are how the numbers break down, the "high-cost" areas will get the top limit of $729,750, but that figure could change when those locations are released. If you direct your attention to page 3 on the link, it is a 90% loan – CLTV – Combined Loan to Value Ratio. This is for fixed loans and there will be credit score requirements.
Adjustable Rate Mortgages will only get to 80% Combined Loan To Value, CLTV. It would also appear that these "Jumbo-Conforming" loans will get an origination increase of .250 points for the fixed product and .750 for the adjustable product. This is pertaining to the Lender’s Fee not an increase of Rate.
Be Safe – CONNOR with HONOR
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