Overall, I am still keeping busy helping my buyers purchasing and my seller to get their home sold. If you need a more defined answer about your market and your zip specific to you, please call me at 760 282 4663.
In regards to the upcoming loan value decline, this is happening end of September and rather fast, only virtually 1 month away!
Here are a few great articles I have founds online, and I will keep on adding them to this blog to answer some of my clients questions ans concerns.
Should you need a lender, just ask and I will be glad to give you some recommendations too!
From CAR: The California Association of Realtors:
Lenders prepare for lower loan limits, stop accepting certain applications In anticipation of the expiration of current loan limits on Sept. 30, 2011, Bank of America has stopped accepting conventional and government applications for loan amounts that will exceed the permanent loan amounts. The deadline to submit loan applications was July 1. According to an email from Bank of America, conventional loans that exceed the permanent loan limits will now be required to use non-conforming programs. Barring congressional action, the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum. The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers. C.A.R. will continue to provide information as it becomes available.
San Diego FHA Loan Limit to be Lowered
San Diego FHA Loans
HUD (Department of Housing and Urban Development) recently announced that the FHA (Federal Housing Administration) will be lowering their loan limits for their high balance loan program. This program is typically for high priced counties and higher priced homes. San Diego County currently has a loan limit of $697,500. Starting October 1st, 2011 the San Diego County FHA loan limit will be reduced to $546,250. Many lenders will stop accepting loans up to the old limit after September 1st, 2011. If you are looking to purchase or refinance a home in San Diego County and the loan amount is greater than $546,250 you need to get your application in soon and close the loan in the next few months. Please feel free to contact me if you have questions.
Here are some additional California Counties that will also be affected:
Los Angeles County Current Loan Limit: $729,750 New Loan Limit: $625,500
Orange County Current Loan Limit: $729,750 New Loan Limit: $625,500
Riverside County Current Loan Limit: $500,000 New Loan Limit: $355,350
San Francisco County Current Loan Limit: $729,750 New Loan Limit: $625,500
Santa Barbara County Current Loan Limit: $729,750 New Loan Limit: $625,500
San Bernardino County Current Loan Limit: $500,000 New Loan Limit: $355,350
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