October 1, 2011 brings with it the new limits for fannie mae and freddie mac. What this means for buyers and sellers depends on the area they are in and the price of the homes they want to buy or sell. Sellers in higher end areas may have to bite the bullet and take less for their homes if they want to move them. Buyers may have to choose a home in a different area or of lesser value to make it work financially.
Remember, each U.S. metropolitan area was assigned a temporary loan size limit equal to 25% more than its median home price.(1)
For New Jersey: 2011 Conforming and FHA Loans Limits
1 unit property 453,750 maximum same for FHA
2 unit property 580,850 maximum same for FHA
3 unit property 702,150 maximum same for FHA
4 unit property 872,600 maximum same for FHA
Rates may be better before October 1, 2011 – Talk to your trusted broker to get the fine print before you make a decision to move forward now.