Buyers that fall into the jumbo-mortgage market may want to act fast

Unless Congress implements changes before the September 30 deadline, the limit on mortgages that can be backed by the federal government will drop significantly, according to the New York Times.

On October 1, the maximum loan amount that government entities can provide will drop from $729,750 to $625,500. That means that a person who is planning on moving into a $1 million property, will have to make a $370,000 down payment instead of a $270,000 one.

The maximum loan amount before the housing crisis hit in 2008 was $417,000 nationally. That number was then bumped up to $625,500 and then again to $729,750. Once the heightened limits expire, people holding these jumbo-loans will be forced to hold onto the mortgage themselves, or find a private investor.

Experts believe that this drop in financial backing will have the most significant effect on high-priced markets in California, New York, New Jersey and Washington, according to the Times.  

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