The economic stimulus package, which is slated for a full House vote next month, will hike the Fannie Mae/Freddie Mac loan limit back up to $729,500, said Rep. Barney Frank, chairman of the House Financial Services Committee. The Democrat from Massachusetts said the loan limit increase has received the blessing of the incoming Obama Administration. The loan limit (for high-cost housing areas only) had been temporarily increased to $729,500 early last year but expired at Dec. 31. The new loan cap is $625,000, which will remain in place until the stimulus legislation passes. Many top ranked lenders continue offering jumbo mortgages but at interest rates 200 basis points higher than on "conforming" loans.
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