WASHINGTON (Reuters) – Bethany and Karl Schreiber are trying to find an excellent house that is big the expensive Washington, D.C., suburbs plus they are dealing with a due date: in only a couple of months their 3rd child may be created, and also the tiny two-bedroom they’ve been inhabiting will officially get too tiny.
But there’s an extra due date looming for them too. Starting on October 1, the federal government will dial right back from the measurements of mortgages it guarantees in high-cost areas like bay area, nyc and Washington.
From then on, the utmost loan quantity that Fannie Mae and Freddie Mac will straight straight back is planned to drop from $729,750 to $625,500. And that will make mortgages more costly or harder to obtain for buyers such as the Schreibers, who’re shopping when you look at the $700,000 range and would like to help make a downpayment of ten percent or less. (more…)