[happycdbasten]

I searched online and see that the government approved it on March 5. But when I called lenders they told me they don't have it implemented yet. So practically I still have to use jumbo if I buy a house right now. Does anyone know or have some "insider" infor when will the banks start to offer based on the new confirming limit? I am debating now if I should wait for that coz currently Jumbo is too high comparing to confirming 30 years.

[shwee]

Originally Posted by happycdbasten

I searched online and see that the government approved it on March 5. But when I called lenders they told me they don't have it implemented yet. So practically I still have to use jumbo if I buy a house right now. Does anyone know or have some "insider" infor when will the banks start to offer based on the new confirming limit? I am debating now if I should wait for that coz currently Jumbo is too high comparing to confirming 30 years.

I thought that the new limits were already in effect through the end of the year at a minimum. It seems odd to me that lenders wouldn't be taking advantage of this yet. The correct term is "conforming," by the way.

[toddb]

Originally Posted by shwee

I thought that the new limits were already in effect through the end of the year at a minimum. It seems odd to me that lenders wouldn't be taking advantage of this yet. The correct term is "conforming," by the way.

Banks are having so much trouble coming up with the funds and are so busy writing off the full value of these subprime loans (even though the houses are still standing and still have value)... They haven't bothered implementing the new jumbo-conforming combo loans yet because they don't know how to price them.

These new combo loans will only help the consumer, and we all know that the banks could care less about that. Their feeling is that if you can afford a more expensive house, you can afford the jumbo rate. What they should have done is set the conforming rates to vary based on your area, not create this new 3rd category that just confuses everyone.

Once the information on them starts to get more well known, and 1 bank starts offering it, the rest will follow suit. For now, though, you may be better off getting a conforming loan plus using a home equity line/loan for the balance. That's what we did last year.

[jojofree]

I was told the banks don't know how to implement them as of yet. I was also told the rates were not the same as current conforming loans, they are higher. I believe close to the Jumbo, so I really don't even see the point of them.
Hope this helps

[Rich Lee]

Don't think that they're not trying. Here's a summary of real estate transactions (all types of properties) of Q1 2008 compared to Q1 2007 from the Statewide MLS:

2008 - 5,188 closed transactions
2007 - 7,319 closed transactions

...decrease of 29 percent.

I wanted to include 2006, but it would be an apples-to-apples comparison since the Statewide MLS now includes eastern Connecticut.

[jojofree]

Originally Posted by happycdbasten

I searched online and see that the government approved it on March 5. But when I called lenders they told me they don't have it implemented yet. So practically I still have to use jumbo if I buy a house right now. Does anyone know or have some "insider" infor when will the banks start to offer based on the new confirming limit? I am debating now if I should wait for that coz currently Jumbo is too high comparing to confirming 30 years.

Does anyone have any new info. for this post?

[toddb]

Originally Posted by jojofree

Does anyone have any new info. for this post?

Nope -- I've asked around over the past month while shopping for a home equity line (since we took the full conforming limit as our mortgage), and none of the banks are implementing it or planning to any time soon. Granted, that could mean nothing as they can offer it tomorrow, but the agents I talk to don't know about it yet. The banks are so scared to loan any money that throwing a new type of loan in the mix isn't going to happen any time soon.

Depending on the size of your loan, getting a conforming loan and home equity for the balance might give you a lower payment than whatever new jumbo/conforming hybrid loan the gov't approved. The odds are that these new loans will be close to the jumbo rates for a while, maybe eventually settle in the middle. Why they didn't just call it a conforming loan and instead labeled it a hybrid is beyond me...

[Diamonds1]

I know a lender who does do conforming with higher limits. Depending on what county you are in.

[jojofree]

Originally Posted by Diamonds1

I know a lender who does do conforming with higher limits. Depending on what county you are in.

Hartford county, Who?