Congress has extended the higher loan limits for conforming and FHA loans through 2010. This greatly helps home buyers in high cost areas, like California, where many buyers have had to turn to more expensive jumbo loans in the past.
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Higher Conforming and FHA Loan Limits Extended Through 2010 | High …
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The increased upper limits, which have been extended until the end of this year, have created a three-tier system in expensive areas, mortgage professionals say: loans of up to $417000, which are the easiest to obtain and carry the lowest rates; ?conforming jumbos? from $417000 to $729750, ... It could shrink more if conforming-loan rates rise as expected after the Federal Reserve wraps up a $1 trillion-plus program to support the market for conforming loans next month. ...