New federal home-loan caps hit Kitsap County hardest

New federal home-loan caps hit Kitsap County hardest

Local real-estate agents and mortgage lenders fear a drop in federal home-loan limits starting Oct. 1 will harm an already-weak Puget Sound area housing market and potentially unravel pending deals.

Three years ago, to stimulate the economy, Congress temporarily expanded the maximum home-loan amounts backed by federal guarantees. Those limits expire Sept. 30, and new, lower limits go into effect for pricey housing markets in some 250 counties, including many in California and the Pacific Northwest.

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