The chairman of the National Association of Home Builders recently called on lawmakers to pass legislation that would reinstate higher loan limits for consumers who are seeking to refinance their mortgages.
The upper loan limits for mortgages which could be backed by Freddie Mac, Fannie Mae and the FHA dropped on October 1. However, some lawmakers are working to restore those higher limits for the FHA, which is popular among first-time buyers. NAHB chairman Bob Nielsen urged quick action.
"The FHA program is fully self-supporting, and a great example of a public-private partnership with lending institutions," said Nielsen. "Restoring the loan limits will provide millions of potential consumers in markets throughout the nation access to safe, affordable mortgage financing."
Nielsen added that restoring the loan limits will help revitalize the housing market and "ensure that millions of creditworthy borrowers can access the best possible mortgage rates."
Access to prime lending rates may be complicated if there are any unfair marks left on credit reports. Consumers should be watchful of these errors so that their financial histories are accurately portrayed.