Fannie Mae backed jumbo loans

[Anonymous]

Are the jumbo loans backed by Fannie Mae expiring for sure by October 1? If so, how will that impact buying a house where you need to take out a loan over $729K? Do we have to lower our price range? Thanks for insights and advice!

[Anonymous]

There was an article on this in the Post just this weekend:
http://www.washingtonpost.com/realestate/banks-see-opportunity-in-reduced-federal-mortgage-limits/2011/07/05/gIQAWPXo3H_story.html

[Anonymous]

Anonymous wrote:Are the jumbo loans backed by Fannie Mae expiring for sure by October 1? If so, how will that impact buying a house where you need to take out a loan over $729K? Do we have to lower our price range? Thanks for insights and advice!

For loans under the current limit ($729,500) and over the new limit ($625,500), it will be harder to qualify and interest rates will go up. The higher rates and harder qualification will probably push down prices of houses where people are usually taking out loans in or near that range (in other words, it won't affect $2 million houses or $350,000 houses, but a $900,000 house will probably go down in value a bit).