Late last month President Obama signed a congressional resolution to extend through Sept. 30, 2011, the conforming loan limit of $729,750 for high-cost areas, many of which are in California. The same limits will also apply to loans insured by the Federal Housing Administration (FHA). This means with as little as 3.5% down, first time buyers (or anyone for that matter) can purchase a home without having to find a huge down-payment. Without the extension of the loan limits, which would have expired last month, many California borrowers would have a harder time refinancing homes and obtaining financing for new home purchases.
On an other note, if you're thinking of purchasing an REO, Fannie Mae recently announced it will offer qualified homebuyers who purchase a Fannie Mae-owned property listed on the company’s REO Web site, www.homepath.com up to 3.5 percent of the final sales price, which can be used toward closing cost assistance, including a home warranty, if desired and available. To be eligible you must be the owner-occupants. Offers to be submitted on or after Sept. 23, 2010, and must close by Dec. 31, 2010. The sale needs to be closed within 60 days of the offer being accepted.
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