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 March 17, 2008

Loan Limits in San Diego County
All the great news of the FNMA and FHA increased loan limits for San Diego County has some people contemplating how much the FNMA will actually help in the recovery process. However, there is little doubt that the FHA will play a major role in this process by helping people buy homes as well as allow those in need to refinance their mortgages.
The FHA will help by offering low down payments, lower FICO scores, allowing the down payment to be a gift and most importantly will not allow an adjustable loan rate where home values are decreasing.

One thing to be aware of and cautious of is the vast array of loan originators that are trying to take advantage of the FHA loans even though they are inexperienced. FHA loan originators have to be employed by a lender and they also must receive a W-2 from that lender and cannot be contracted independently.

One of the major problems in regards to the FNMA is the level of restriction on loan that exceed $417,000. An example of this is the one who borrows is not allowed to consolidate a first and second mortgage. Also, the FNMA requires a higher FICO score on loans that exceed or are equal to 75%.

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