Dennis' Mortgage Blog

A joint Conference Committee today passed a bill that includes provisions to raise the FHA loan limit in high cost areas back to $729,750 through 2013. Although an increase back to $729,750 for Fannie Mae and Freddie Mac loans was included in the Senate version of the appropriations bill that was passed the provision was taken out in the joint committee that decided the final language of the bill.

A Conference Committee comprised of members of the Senate and the House of Representatives creates one bill from legislation that has passed the House and the Senate but with different language and amendments. Once a bill has cleared the Conference Committee it is then presented to each legislative chamber for a vote and cannot be amended; this way the same bill with the same language and provisions passes both the House of Representatives and the Senate for the President's signature.

The appropriations bill containing the increase in FHA limits for high cost areas is expected to be voted on in the House this week and the Senate next week. We could see the higher FHA limits by December.

For clients seeking loans over the current conforming limit of $625,500 we have jumbo loan products available, or soon we will again have FHA mortgages up to $729,750 again. With the very low FHA rates for high balance loans (3.75%) even with the FHA mortgage insurance we are seeing payment benefits for many clients versus conforming with private mortgage insurance or jumbo financing.

Please have your clients give me a call if they are in the market for a new home, or your past clients who can benefit from refinancing to the low rates now available.