WASHINGTON — The economic stimulus bill President Bush signed into law yesterday provided some added relief to the flagging home mortgage market.
The package temporarily raises the limit on Federal Housing Administration loans to $729,750 and also raises the cap on loans that mortgage giants Fannie Mae and Freddie Mac can buy.
Raising the limits for "jumbo" mortgages–those exceeding $417,000–may help ease the credit crunch, which made them harder to get, except at credit unions, where jumbo rates were more competitive. While much of the publicity over the mortgage meltdown has been showered on the subprime market, access to funding for jumbo loans at many banks had been curtailed.
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