Read this very carefully...

And explain why the tax payers have to support rich people's loans. If you can afford a $800,000 house why do I , as a tax payer who makes 40,000 a year, have to guarantee your mini-mansion?

That's right. You paid the politicians for that guarantee! (used to be called bribery) Does anyone think any banker in his right mind would make these loans without FHA approval? Think they would turn these yuppies down? Guess where more massive corruption will be at? The Federal government now owns all the housing in the country!

Boom time, baby!!!

See why we're pissed at the gang in Washington!


The Real Estate Bloggers

Congress has extended the limits for jumbo mortgages through 2011 providing some much needed stability for the United States housing market. The rates allow geographic increases of the traditional max rate for Freddie Mac and Fannie Mae loans up to $729,750 in the highest priced markets.

Since private equity loans have all but dried up in the capital crunch, the need for government backed loans has been very important for the real estate industry. If Freddie Mac and Fannie Mae will not buy the loans then the private market will need to. And since the cost of capital is so high, jumbo loan borrowers are paying a significantly higher interest rate.

Now with the new limits proposed by Congress, buyers can qualify for the reduced mortgage rates, as low as the mid 4 percent rate for highly qualified borrowers and only need to put 3.5 percent down on an FHA loan. Otherwise these same buyers will need to put 10–20 percent down and pay a 6–8 percent mortgage rate for the same home in the private market.