Fannie Mae and Freddie Mac Reduce Maximum Loan Size


Fannie Mae and Freddie Mac will cut the size of loans they buy from lenders effective October 1. It will force many future borrowers into jumbo loans.  Jumbo loans are more expensive and harder-to-get than conventional loans.

The Freddie and Fannie limits, which are generally $417,000 for single-family homes nationwide, were raised in 2008 in some high-cost housing markets to stimulate the economy. In many areas, the limits rose to $729,750 and next month they'll fall to $625,500. Limits will drop more sharply in some areas and less in others.

This will make it harder to get loans for more expensive properties and further damage our fragile economy.
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About rereno

Real estate investor
This entry was posted in Banks, Government, Home Prices, Real Estate and tagged , , , . Bookmark the permalink.

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