The Economic Stimulus Package that was signed into law included an immediate increase in both the FHA and conforming loan limits to as high as $729,750 in our high cost LA Beach neighborhoods.
This means that the interest rates on many mortgages will go down because these loans are now eligible to be purchased by Fannie Mae and Freddie Mac or insured by the Federal Housing Administration (FHA). Previously, the FHA was only allowed to insure loans with balances lower than $200,160 - $362,790, depending on the county where the property was located.
What does all of this mean for you?
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