It’s official! The President has finally signed the economic stimulus package, which, among other things, includes a temporary increase of the conforming loan from $417,000 to $729,750 locally, and a temporary increase of the FHA loan from $362,750 to $729,750 in our area through December 31, 2008.
With the passage of the stimulus package, people may now obtain less expensive loans, thus reducing their monthly payments, improving homeownership affordability and increasing buyers’ purchasing power. Now couldn’t be a better time for Northern California real estate.
It is projected that this package may result in as many as 500,000 refinanced loans and could help reduce foreclosures by as many as 210,000.
The National Association of Realtors also estimates:
• That over 300,000 home sales could be generated thus reducing housing inventory and home prices could be strengthened by two to three percentage points.
• Nearly half a million people with higher priced jumbo loans may be able to refinance to conforming loans under the provisions of the bill, saving these people approximately $270 to $410 a month.
Happy Valentines' Day!
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