After months of deliberation, Congress and President Obama have signed off on new rules to scale back mortgage limits. This continues the previous emergency status they were placed in back at the beginning of 2009. If it sounds scary, its only because emergency status allows more money to be borrowed for the mortgage, allowing homeowners access to extra money. Intimidating as the name may be, its certainly a good thing for first time home buyers and potential buyers looking to upgrade.
This is only applicable to FHA-secured loans. The loan limits are here to stay until the end of 2013, when they will once again undergo evaluation. Freddie Mac and Fannie Mae mortgages will stay at the previous level of 115% compared to the 125% level of other FHA-secured loans. The amount differs as to the amount of families in the home. In other good news, interests rates are still holding low, which means less out expense for homeowners.