Tuesday, February 17, 2009

Los Angeles Conforming Loan Limit Raised to $729,750

The Economic Stimulus Package being signed today by President Obama contains a provision that will help local buyers -- the conforming loan limit will be raised to $729,750 from the current $625,500. These "junior jumbo" loans, in the $417,000 - $729,750 (for single family homes), have slightly higher rates than the under-$417,000 conforming loans, but much lower rates than the the over $729,750 jumbo loans, that have rates hovering near 7%. This conforming loan limit increase will also help many homeowners refinance their loans. The rates of these "junior jumbos" are in the 5 - 5.75% range, depending on the buyer's credit and the type of property being purchased.