Mar 06 2008
FHA Increases Loan Limit for Seattle
The Department of Housing and Urban Development released loan limits for the Seattle and surrounding areas today. That makes the new FHA, Fannie Mae and Freddie Mac loan limit $567,500 (125% of the median home price). This is part of the economic stimulus package signed by President Bush earlier at the end of Feb this year. The bill currently increases the home loan limits and ends December of 2008.
 The loan limit for other dwellings in the areea are as follows:
- one family $567,500
- Two family $726,500
- Three family $878,150
- Four Family $1,091,350
 To review loan limits for other parts of the state and country visit the HUD Site (Dept. of Housing and Urban Developement.
The FHA limit was $417,000 for one family condos and houses in this area prior to this bill.
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September in interest rates we have seen little fluctuation in long term mortgage rates. But the Fed increasing loan limits do help you becasue these are more liquid investments for the lenders.
the fed cut the rates it does not mean the mortgage rates will go do down the same amount to buy that Seattle condo because investors do not want to get locked into long term investments with low interest rates if we have high inflation. Despite a reduction of 2.25 points since September in interest rates we have seem little fluctuation in long term mortgage rates. But the Fed increasing loan limits do help you becasue these are more liquid investments for the lenders.