limit on conforming mortgages

The best rates are still for mrgts under 417,000. But under the new senate plan I believe the new limit is more like $580,000. A mortgage broker can tell you exactly what it is.

that's for NY but it varies by mkt.

The limit for NY metro area is almost $730,000. These new conforming rates will still have a higher interest rate than the old conforming figure.

On the Mortgages thread, bugelrex posted this link which shows that co-ops are being excluded from the conforming limit increase:

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0805.pdf

"Ineligible Products, Features, or Transaction Types

• Cooperative properties"

The universal consensus as of now is that conforming loan limits for co-ops has not changed. It remain 417,000. New legislation does not impact co-ops.

Universal consensus???? Does that really cut it???? Mortgage broker, PLEASE speak up.

Yeah, "universal consensus." Well, that's sort of a bad pairing of words, but the point is that the doesn't seem to be anyone who has read the legislation or info from lenders that believes co-ops are covered. Not even on the streeteasy forums which seem to attract input from every nutjob in the city. The legislation appears to mean what it says. No co-ops. If anyone disagrees, we've been asking on here for 2 weeks for you to pipe up and educate us.

My mortgage broker told me that co-ops ARE NOT allowed in the new conforming increase. Co-ops can still get a 30-year conforming up to $417,000. Condos DO qualify for the new conforming limit up to $729,750, albeit at a slightly higher rate than that of a loan $417,000 or less. Another benefit of buying a condo vs a co-op.

I believe the "benefit" of buying condo with the new legislation is reduced when you see that in order to get the same 30-year rate that is being offered on a traditional conforming loan of $417,000, you have to pay a mandatory two points on the $729,000 mortgage.

kylewest, assuming i dont want to do the points, do u know what the approximate spread is on the new conforming limit vs. a loan under the old limit? im guessing if its ~150bps now btwn a conforming and a jumbo, that'll it'll be somewhere in between 0 and 150bps?