September 24th, 2011
As part of its plan to reduce Fannie Mae’s involvement in the mortgage market the government is taking the current “high value” loan limit on single family homes from $729,750 to 625,00. After September 30th loans over $625,000 will be a “jumbo” mortgage.
In addition, there have been some changes in the amount of cash reserves required. Whereas currently you have to show two months worth of liquid assets, after September 30, you may need to show 10% of the loan value, generally a larger number.
See the chart below, which gives an idea of what will be required at different interest rate levels.