Jumbo-->Conforming (Stimulus Plan) Start Date

NEW -> Contingent Buyer Assistance Program
G

giltee_IHB

New member
Hi All,



I have a potential buyer for my house who is wanting to push escrow out to 60 days with the hope that the new limit for conforming loans will kick in (allowing him to qualify for a lower interest rate) in that time. Does anyone have any resources I can tune into to know as soon as possible when the new limits will be defined and when the banks will adopt them?



I saw commentary on this in a blog, but it didn't have all the info I was hoping for:http://gorydetails.typepad.com/the_gory_details/2008/02/the-new-conform.html
 
<p>Wow, giltee, 60 days is a long time in a declining market, especially entering a time of year when inventory starts hitting the market. That's a big price risk you could be taking...</p>

<p>I haven't seen anything official either, and I've been keeping an eye out. Mostly just conjecture that the OFHEO is going to drag its feet and the only estimates I have seen are for things to be in place by the summer.</p>

<p>Good luck. Get your full 3% earnest money and don't push out the buyer side contingency period. Personally I wouldn't take my place off the market for someone that appears to be that close to the edge of affordability. Inflation expectations could wipe out any ultimate gain from the new limits vs. rates where they are today.</p>
 
Was talking to a couple lender reps today and they know very little still about conforming jumbos. One is offering them on only 15 and 30-year fixed programs. Rate with no points is around 6.75-6.875 so still a full point or so higher than the conforming 30-year rate.
 
You must log in or register to reply here.
Back
Top