I am looking to purchase a new home and wondering about the timing of the conforming loan limit change. Should I wait to put an offer in until banks reflect a change? Will this change take day, weeks or months? I found a place I like but am worried about loosing it.When will new purchase mortgages reflect the new conforming loan limit?You are speaking as if you know what the change will be. Until HUD decides what the limits are for what areas, no one knows anything. We should know in under 30 days. Yes the limit will be $729,750 but where those limits will be is still a question. If you are assuming your house, in your area, will qualify for a conforming mortgage above the current $417,000 you may end up being surprised.When will new purchase mortgages reflect the new conforming loan limit?The new conforming loan limits are technically in place right now and are retroactive until, I believe, July of 2007. The more important question will be if the home you are thinking of will actually qualify for the raised limit.
The new limits are only valid in certain %26quot;High Cost%26quot; areas where the median home price is above $333,000.00. There is also no guarantee that IF the home IS in one of these High Cost areas that it will be able to take advantage of the entire allowable $729,750.00 either. The actual ceiling will be determined by taking 125% of whatever the median home value is.
Here is a link to an article that goes into detail complete with examples:
http://www.mortgagenewsdaily.com/2132008
The funny thing is that the HUD doesn't even have a complete list of what the median home values are and is now in the process of doing the research.... So we have to wait until they are done and they release the information before we can even determine who is eligible for it.
Personally, I would say that if you find a home you like then go for it....When will new purchase mortgages reflect the new conforming loan limit?Call a mortgage broker and see what he can do for you. He may be able to arrange a loan, so that you do not lose the home you want. Are you working with a realtor? Sometimes the provisions regarding obtaining the mortgage can be negotiated to give you more time find appropriate financing. If you work with professionals, they will help you.
