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Shel-lee Davis' Blog

By Shel-lee Davis - BRE #01817412 | Agent in 90274

Love Torrance? You Can Still Finance Using Conforming Loans! Gov't Extended Higher Conforming Loan Limits.

According to the California Association of Realtors,


Late yesterday, President Obama signed a resolution that included a provision extending through fiscal year 2011 the current conforming loan limit of $729,750 for high-cost areas, including many in California.  The same limits will also be extended to loans insured by the Federal Housing Administration.

 

We’re extremely pleased that the Obama administration recognizes the need for such an action so that the housing market can recover.  Without the extension, which was set to expire at year’s end, FHA loan limits would have dropped by as much as 50 percent in some areas, and the conforming loan limit would have dropped by about 40 percent.

C.A.R and the NATIONAL ASSOCIATION OF REALTORS® (NAR) have long advocated making permanent higher conforming loan limits.  As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits from $417,000 to $729,750 in high-cost areas and extending the limits through 2009.  Yesterday’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through Sept. 30, 2011.

This is good news for both buyers and sellers.  Conforming loans have lower interest rates and are easier to qualify for than JUMBO loans.  With conforming loan rates still in the 4% range, you will save tens, even hundreds of thousands of dollars on your home purchase.  Dare to Dream.

Shel-lee Davis, QSC®

Certified Distressed Property Expert – CDPE®

Short Sale & Foreclosure Resource – SFR®

Certified HAFA Specialist – CHS®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
Lic #01817412
http://shel-lee.listingbook.com

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