Posted by Tim Burrell - As a part of the new stimulus package recently signed by President Bush, the loan limits for Fannie Mae, Freddie Mac and FHA loans were increased to 125% of the median price of a home in the area, up to an amount of $729,750.    The Department of Housing and Urban Development has released the increased limits for the state of California yesterday, and the limits for other states are expected to follow in short order.   The new loan limits are set county by county for the entire state.

What does this mean for North Carolina, particularly Triangle real estate?  The initial projections were that it would probably mean very little.  Most of the counties in North Carolina have homes where 125% of the median price is still under the old limit of $417,000.  All of the four counties in the Triangle fit into this category. 

However, it just came out today that the loan limits for Wake County went up from $224,000 to $295,000 and the loan limts for Durham County was raised to $331,000.  So, there are more homes that can use FHA, Fannie Mae and Freddie Mac loans (called GSE loans).  This will help Triangle real estate, particularly Wake County real estate and Durham county real estate, as homes that are priced near $300,000 to $350,000 will have better financing available to encourage their sale.