Unless Congress acts, the current loan limits for FHA and conforming loans will expire on Sept. 30 and the cost of a mortgage could rise significantly. More than 30,000 California families will face higher down payments, higher mortgage rates, and stricter loan qualification requirements if conforming loan limits on mortgages backed by the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac are reduced beginning Oct. 1, 2011, according to analysis by C.A.R.
For San Francisco, if you are buying a $920K property, instead of needing $180K down, you will need $274,500. This means it will be harder for buyers to get loans and therefore harder for owners to sell their property.
Please contact Congress today and communicate clearly that a housing recovery depends on keeping mortgages affordable and that Congress needs to prevent these higher loan limits from taking effect.
By responding you will be urging both Senator Feinstein and Senator Boxer to work to maintain the current loan limits. If you have already responded to NAR’s Call for Action, there is more that needs to be done:
We have tons of buyers that may want to buy your property, and there are a whole lot more out there, many with all cash, who are waiting for your place to come on the market. Contact us now for an evaluation of your home, condo, tic, or multi-unit property - it may be time for you as well....
- Please urge the agents in your office to respond as well using the same link.
- Help mobilize your clients. If you or your agents have clients that will be affected by the reduction in loan limits, please have them contact our U.S. Senators Directly to urge them to maintain the current loan limits:
Sen. Dianne Feinstein -- (202) 224-3841
Sen. Barbara Boxer -- (202) 224-3553
For a free expert consultation contact Owner/Managing Broker Lance King at 415.722.5549 or firstname.lastname@example.org
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