The Economic Stimulus Act passed by congress this spring is best known for the “stimulus checks” which are now being sent out to taxpayers across the country. But the act also did a big favor for local homeowners by allowing government lenders Fannie Mae and Freddie Mac to gaurantee or purchase larger loans than ever before.
Up until April, any loan above $417,000 was considered a “jumbo” loan, and the larger loans usually meant a higher interest rate, among other things.
But thanks to the Economic Stimulus Act, buyers in the Seattle-Bellevue-Everett metro area can now get a regular, conforming loan of up to $567,500 without having to invest in a “jumbo” loan. And that’s great news, because the lower interest rates of non-jumbo loans mean lower payments, and lower payments mean you can get more house for your money.
Thanks to the Economic Stimulus Act, our local market has a good number of homes available, relatively stable prices, and reasonable loan limits. Many sellers are willing to negotiate with buyers, and yet buyers in our area don’t face the enormous worry of falling house prices that are present in other areas of the country. And with houses staying on the market a bit longer than just a couple years ago, buyers have time to look around and really consider their options. All in all, it’s a great time to be a home buyer.
The new loan limits are available through the end of December, 2008, and it’s possible they may revert to the old, lower limits at the start of 2009. Many economic experts have suggested housing prices may start rising again in 2009, so if you’re thinking of buying, now might be the best time in years.
