New Fannie Mae Loan Limits

As part of the recent economic stimulus package, Fannie Mae has raised their conforming loan limits around the country. Hawaii already had higher conforming loan limits than most of the country. Hawaii’s new loan limits will be somewhere in the range of $720,000. Over the last week, various lenders who we work with have been training on the new limits. We should see loans with these higher limits becoming available to the general public in the next week or so. While loan limits have increased, the number of loan programs has been shrinking. Banks are demanding higher credit scores for all programs. Buyers should closely monitor their credit to be eligible for the best loan programs. Buyers who are thinking of purchasing a property should get pre-approved prior to looking at homes. That will help you get a better sense of your budget and will strengthen your offers. Many short sale listings demand that you have a pre-approval letter prior to considering your offers.