It’s true! HUD (the US Department of Urban and Housing Development) confirm
ed that San Diego is approved for an increased loan limit of $697,500 - applicable to FHA (Federal Housing Administration) and Conforming loans. Our affiliate lender Home Services Lending will be ready to start writing loans by March 17th. They also will have the ability to approve up to 97% of loan to value for loans that are fully documented; i.e. the borrower has provided full documentation and verification of all income and personal information.
The government hopes that increasing our county’s loan limit will help stimulate the housing market. Although, it doesn’t help everyone as there are many stricter rules placed on these new loan limit programs. A FICO score of 700 and above plus as much as 20% of a down payment will be needed to get approved. The interest rates will also be a bit higher compared to the rates previously seen with the loan limits set at $417,000.
So what are your thoughts on the new loan limit? Good, Bad, Ugly? We’d love to hear! In the meantime we’ll keep you informed as we hear any updates to the details of these new loan programs!
2 responses so far ↓
1 Rob // Mar 12, 2008 at 9:06 am
I’m actually kinda bummed about this… I was hoping the limit would stay put and coax more sellers into coming down under the 417 limit: where they probably SHOULD be. How do you think this will affect pricing? Will it have any bearing?
2 Peter Toner // Mar 13, 2008 at 12:02 pm
Symathize with your feeling on the this issue, Rob.
I suspect a lot of “fence sitters” out there are waiting to make a move when they feel that the relationship between prices, interests rates and mortgage availability come together.
My gut feeling is that this will have a positive effect on buyer sentiment and confidence.
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