As part of the recently implemented economic stimulus package, home buyers will be able to borrow and homeowners will be able to refinance larger loans approved by the Federal Housing Administration (FHA), the Boston Herald reported March 30, 2008.
"Depending on the location of the property you want to buy or refinance, you can now get an FHA-insured mortgage for as much as $729,750 with a 3 percent down payment. You can also apply for loans designated for funding by Fannie Mae and Freddie Mac up to that amount - or 125 percent of your area’s median home price - but with larger down payments of at least 10 percent."
The previous amount was $417,000.
"Absent congressional action, the limits will drop back to $417,000 for Fannie and Freddie, and to $362,790 for FHA, beginning New Year’s Day. In the meantime, there should be plenty of jumbo mortgage money available for anyone who can afford it."
Among other conditions, you'll need a minimum of 10 percent for a down payment, and you need a minimum credit score of 700, if you're putting down less than 20 percent.