Finally – something with teeth!

As part of the economic stimulus package passed into law this past month, Fannie Mae, Freddie Mac, and the FHA have increased their conforming loan limited to $729,750 in the DC Metro area starting April 1!

Though pricing has yet to come out, this change should make buying in the DC Metro area much more affordable. Talk to your individual lender about how this impacts your qualification. FHA loans have not been viable for years because the caps were too low and the loan to cumbersome. The FHA limit is permanent, but the Fannie Mae and Freddie mac limit expires at the end of 2008.

Do you think a change like this will make you more or less likely to buy this spring and summer? Feel free to post a comment on our blog.

The sales statistics clearly show a buyers market with transactional volume down. Do you wonder where these stats come from? Check out the sales figures from the Greater Capital Area Association of Realtors.