Proposed being the key word. Congress is actively working on passing legislative that they believe will assist our nation’s housing market and in doing so stimulate the economy.
The conforming loan limit currently is set at $417,000 - anything over that figure is considered a “jumbo loan” at higher interests rates. Although that amount may be a reasonable in some areas of the nation, it is not nearly enough for many areas of the market such as our beloved California.
The proposal is to increase the conforming loan limits dependent on each market and its median home sale prices. The increased amount would be capped at $729,750 even if the median home sales price for that area calls for it to be higher.
The benefits may be two-fold. Buyers would experience a deduction in their monthly payments by having the ability to obtain the lower interest rate conforming loans rather than the traditionally higher rate jumbo loans. However, the proposed increase is to last only one year, so sellers may also benefit from eager buyers wanting to act quickly in order to take advantage of the change.
We will have to wait and see if this plan shall truly pass and if so, will enough buyers come “off the fence” to make a difference to the San Diego real estate market.
Written by Shawn McDonald. Search every home for sale in San Diego County
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1 Are You a Bottom Feeder? | Redfin San Diego Sweet Digs // Feb 14, 2008 at 8:25 am
[...] looks like conforming loan limits will be raised, making it easier for homeowners to refinance higher priced properties at lower [...]
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