Loan Limits raised

The Economic Stimulus package raised the loan limits for FHA, Fannie Mae and Freddie Mac. This bill passed by Congress and signed by President Bush on 2/13/2008 will be in effect for 1 year.

The Federal Housing Administration (FHA) is an agency of the Federal government that insures loans so that borrowers can get loans with lower down payments.

The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are non government agencies that buy loans from other lenders so that those lenders can reuse the money to make more loans.

By raising the limits on the loans that these 3 agencies can make, Congress will allow people who live in high home cost states such as California to be able to refinance into mortgages with lower rates.


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