At the end of September higher loan limits expired, dropping the limit for an expanded conforming loan from $729,750 to $625,500. Allowed to continue, this could have disastrous results. An excellent example of how this impacts the real estate industry is a listing we have at 274 6th Avenue - www.274-sixthavenue.com.
Priced at $990K, buyers now need $365K down to get a conforming loan as opposed to $261K a month ago. No one in their right mind can argue that a $261K down payment requirement on a $990K property in San Francisco is some kind of handout or subsidy.
Fortunately efforts are underway to restore the higher limits. The Senate has passed an amendment to an appropriation bill that would restore, until December 31, 2013, loan limits to 125 percent of the area median home price from 115 percent and raise the high-cost limit to $729,750 from $625,500.
For more information on this and other real estate matters contact Owner/Managing Broker
Lance King - firstname.lastname@example.org
King Realty Group - Better Service. Better Price. Better Results
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