President signs economic stimulus bill, which includes raising conforming loan limits

President Bush today signed off on the $168 billion stimulus packaged approved by Congress last week, which, in addition to tax rebates for millions of working Americans and business owners, includes a vital, but temporary increase in the conforming loan limit.  The economic stimulus package will allow the Federal Housing Administration, as well as Fannie Mae and Freddie Mac to offer mortgages above the current conforming loan limit of $417,000 to as much as $729,750 in high-cost areas for loans originated between July 1, 2007 and Dec. 31, 2008. 

Raising the conforming loan limits to more accurately reflect the cost of housing in California and other high-costs areas of the nation has long been a top C.A.R. objective.  Currently, Californians are forced into more expensive non-conforming jumbo loans, decreasing homeownership opportunities for many and forcing others into more costly and often riskier loan products. 

The actions of Congress and our president represent a significant victory for homeowners across the state and nationwide, said C.A.R. President William E. Brown.  C.A.R. has long fought for increases to the conforming loan limit in order to close the gap for would-be home buyers in high-cost areas, such as California, and, with the spotlight now fully shining on this important issue, will continue those efforts and push for permanent changes beyond Dec. 31.

The increases call for raising the conforming loan limits to 125 percent of an area's median home price capped at $729,750.  U.S. Housing and Urban Development Secretary Alphonso Jackson will have up to 30 days to determine exactly what the loan limits for high-cost areas will be and, once those amounts have been made public, C.A.R. members will be notified.

The stimulus package also will deliver tax rebates of $600 to $1,200 to taxpayers, and $300 checks to disabled veterans, the elderly, and other low-income people.