New conforming loan limits – estimating the benefit

As part of the now-signed-into-law Stimulus Package, the raising of conforming loan limits is a welcome change for many home owners, buyers and sellers in the San Francisco Bay Area. But there are clearly some limitations of what the benefit will be, who will benefit and if/how/when it will all come together.

Tuck Reed, Executive VP of SunTrust Mortgage, released a memorandum earlier this week that I think best articulates and speculates about the impact of the increase in conforming loan limits. The ramifications and benefits will come to fruition over the next few months and throughout 2008.