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.Â The same limits will also be extended to loans insured by the Federal Housing Administration.
Weâ€™re extremely pleased that the Obama administration recognizes the need for such an action so that the housing market can recover.Â Without the extension, which was set to expire at yearâ€™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 REALTORSÂ® (NAR) have long advocated making permanent higher conforming loan limits.Â As a result of C.A.R.â€™s and NARâ€™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.Â Yesterdayâ€™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.Â Conforming loans have lower interest rates and are easier to qualify for than JUMBO loans.Â WithÂ conforming loan rates still in the 4% range, you will saveÂ tens, even hundredsÂ of thousands of dollars on your home purchase.Â Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
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RE/MAX Palos Verdes Realty