Bush signs the Stimulus Package… Now What?

It’s official.  George Bush has signed the stimulus package.  What does that mean for mortgages?  There has been a lot of talk about the “Conforming Loan Limit” raising to $700,000+.  For some people in California a limited number of areas across the country, that is true.  The H.R. 5140 did not raise the conforming loan limit across the country.  HUD decided to raise the loan limit in “high cost areas.”  These the high cost area’s are specific “Metropolitan Statistical Area’s” MSA’s that have a high median home sales price.  To find out information about MSAs you can visit HUD’s website by [clicking here].  HUD has 30 days to issue the official loan limit adjustments.  The legislation should take the median value of home per MSA and multiply that by 125% not to exceed 175% of the current loan limit.  Our resources estimate that 85 MSAs across the US [31 of which are in CA] will see marginal increases.  Most increases will not be over $600,000.