Fannie/Freddie and FHA Loan Limits Set to Expire in September

Here is a Guest Post by Richard Moroscak, Senior Lending Officer at 
Southern Trust Mortgage (richm@southerntrust.com).


Richard is an expert on lending and he alerted us to a looming deadline 
that all real estate investors should know about.


The loan limits for the Government Sponsored Entities (GSE) 
(Fannie Mae/Freddie Mac) and Federal Housing Authority (FHA) are 
set to expire on September 30, 2011.  This means that unless Congress 
extends the legislation in the next month or two, these loan limits 
will automatically drop to 115% of the median home price in our area 
and they will be capped at a $625,500 loan amount, from a current limit of $729,750.    


This change will restrict liquidity and make it more expensive for buyers to 
purchase homes.


Buyers should keep this deadline in mind and arrange their financing well in 
advance of September.  


Richard is a great resource for discussing this and any other financing issue with.  
His contact information is below:


Richard J. Moroscak Jr.
Senior Lending Officer
Southern Trust Mortgage
Greater Washington Region
Cell: 202-256-9505  Direct: 703-663-9755
Fax: 866-878-4918
richm@southerntrust.com
www.southerntrust.com/richm