What an interesting day. It’s your chance to be gullible or to play a trick on a friend.
Looking back over the last six months I have to wonder how many more tricks the financial markets have for us. A month ago congress passed bills extending the loan limits of various types of loans to over $700,000 and yet, as of today, they haven’t helped much.
On April 1, Fannie Mae will introduce its new, “Jumbo Conforming” loans. As expected, in the Los Angeles Metro area, which includes La Crescenta, Glendale, La Canada, Sunland, Tujunga, Montrose and Shadow Hills, will have a “Jumbo Conforming” loan limit of $729,750. Unfortunately, if you are trying to refinance a 1st and 2nd loan, you can’t use it. Unfortunately, if you are trying to buy a home with less than 20% down you probably can’t use it.
The devil is in the details and on the new “Jumbo Conforming” loans, there are plenty of details.
There is another new product – the FHA Loan Limit. The limits on the old standby – FHA – have also been increased. The rules seem to be more flexible; allowing 3% down payments, easier terms for refinancing and more qualifying possibilities. Questions about appraisal guidlines still need to be answered.
So, are Fannie Mae, Freddie Mac & FHA going to say, “April Fool’s Day”? I hope not. Stay tuned.