FHA to Drop Jumbo Support
Read Full Story
likely will be taking a bath by the end of the year, when government support for many high-amount loans is scheduled to expire
. After two years during which Fannie Mae and Freddie Mac
were authorized by Congress to back loans up to $729,750, the limit in some areas will fall back to the normal $417,000 limit. That same applies to the Federal Housing Administration
. High-cost areas on the coasts, such as New York City and San Francisco, will lower the loan limit to $625,500. Some industry experts anticipate that the move will further undermine home prices
, while some economists say that the effects of the shift are unlikely to change affected markets dramatically. The Obama administration announced Wednesday that it would push for a one-year extension to the high limits, to help stabilize the housing market nationally.
For more on mortgages see these AOL Real Estateguides:
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.