According to Annette Hadad of the L.A. Times, home buyers interested in purchasing a home now have something to smile about! The federal mortgage companies Fannie Mae and Freddie Mac announced this week that they would increase by 16% the amount of money on the “conforming” loans that they will purchase.
Previously, home buyers were only allowed a loan limit of $359,650 for a single family home. However, the loan limit has now been increased to $417,000, thus making it possible for the home buyer to receive a reduction in their interest charges.
In the areas that contain expensive real estate, such as California and New York, this new loan limit would qualify only a small percentage of home buyers, with less than 15% of the people qualifying in California.
