CREIG SAYS...

Dear Friend:

I know you've all been waiting for some relief to our current market conditions, and the news we've all been waiting for arrived today: FHA rolled out their new loan limits for the Maryland area. So more people now qualify for larger loans. Here are the new loan limits:

Montgomery, Prince George's & Frederick Counties: $729,500
Howard, Harford, Carroll, Baltimore City & County, Anne Arundel County: $560,000
Washington County: $377,500

The new limits go into effect today. However this is breaking, developing news and only applies to the nationwide FHA limit. And lenders need to put the systems in place to efficiently process these new products from origination all the way to Wall Street. For Maryland; the Eastern Shore loan limits are effective today. All others go into effect March 17th.

Earlier this week CNNMoney.com released a great article, "Housing: Best time to buy in four years." The article continues to outline how home prices have dropped so quickly over the last few months giving home buyers the best buys they've had since 2004!

Personally, our team has seen a huge increase in momentum within the last 30 days. Buyer traffic is up at open houses. Buyers are no longer watching and waiting, but are writing offers—and quickly.

Case and point: We sold a home in Ellicott City priced at $575,000 in 4 days! We sold a home in Owings Mill priced at $510,000 in 5 days! We sold an $800,000 home in Clarksville in 3 days! We sold a $1M+ home in Woodstock IN ONE DAY! This activity is a fantastic sign of a strong spring market. There's still a considerable demand for homes. But as Lawrence Yun, chief economist of the National Association of Realtors says, it's only a matter of time before the housing market turns around and becomes an engine for, rather than a drag on, the economy.

A seller can ask any price for a home, but if it is not selling within 30-60 days then the market is telling them it is the PRICE!! This company's most valuable asset is our reputation and our experience to guide you through any market and get you the most money in the least amount of time.

Remember to set your clocks ahead one hour Saturday night so that you can spring into the Spring market and be on time to all the incredible Sunday Open Houses!

Hope to see you this weekend. Have an amazing March!

Creig Northrop
President

·  To view Northrop Team listings, click here.

·  To view Northrop Team Open Houses, click here.

The Impact of the New FHA Loan Limits

We expect the impact of these loan limit increases on the housing market to be significant because of the infusion of capital into the mortgage market, which should result in lower interest rates across the board. As NAR research points out, increasing FHA loan limits will help an additional 138,000 Americans achieve the dream of home ownership and will allow nearly 200,000 homeowners to refinance and potentially keep their home. In addition, NAR believes that increasing the loan limits for Fannie Mae and Freddie Mac will bolster the housing finance market by providing an immediate infusion of much needed liquidity to the nation's mortgage market.

An economic impact study conducted by NAR in January 2008 estimated that increasing the GSEs' conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated, housing inventory would be reduced and home prices would be strengthened by two to three percentage points.

HUD was mandated in the Economic Stimulus Act to publish new loan limits within 30 days of the bill's signing by President Bush on February 13.

You can find a county-by-county listing of the new FHA and Fannie Mae-Freddie Mac loan limits at REALTOR.org by following this link: Click Here!

Information provided by: NATIONAL ASSOCIATION OF REALTORS®

Carroll County FHA loan limit is now $560,000
THIS IS GREAT NEWS! Previous FHA loans were capped at $362,790.
What does all this mean? There's Never Been a Better Time to Buy!

What's Your First Step?

Get to our FREE Home Buyer Seminar
Saturday, April 19th

March 6th-FHA rolled out their new loan limits for the Maryland area and Carroll County's FHA loan limit went from $362,790 to $560,000. The FHA program allows a borrower to purchase a home with a LOW DOWN PAYMENT of 3% and flexible underwriting guidelines. With no income limits or credit scoring, many people qualify for these government insured loans.

There's also an FHA modernization act pending approval by Congress and the President -- which could reduce the FHA down payment to 1.5%.

Learn exactly how to find and finance the home you've been dreaming of—with no obligation---at our upcoming seminar. Real Estate: The Keys to Moving Up to Your New Home. We'll talk about non- profit programs like Genesis and Nehemiah to help you move in with no down payment!!

Not only will you walk away with the most up-to-date information on the market, we'll provide you with a plan of action to get into the home of your dreams sooner than you thought possible. We provide the information you want—and need-to know. We are happy to talk about the many programs available today and explain how they can be tailored to accommodate even unique needs. We can help you determine how much home you can afford and guide you through the various down payment and financing options available.

This seminar takes place on a Saturday so it does not conflict with busy working schedules.

Plus, participants are eligible to receive exclusive discounts from our mortgage, title insurance and home service partners:

• $500 Lender Credit from Prosperity Mortgage
• $200 Credit toward Settlement Services
• Home Service Connections discounts and specials: 15% off local moves, moving supplies, storage, home inspections, appliance repairs and much more!