Housing Loan Limits Have Been Raised!!

The Federal Housing Administration (FHA) yesterday announced that it will raise the limits on mortgages. The new limit, which increases from $362, 790 for high cost areas, will vary from county to county across the state.
In California, counties that will be placed at FHA's new $729, 750 maximum limit are Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz and Ventura.
Governor Arnold Schwarzenegger said no state been hit harder by the national mortgage crisis than California. The new FHA limits "will help more working Californians achieve the American dream of home ownership through less expensive and more secure loans," he said in prepared remarks.
The Economic Stimulus Act recently approved by Congress is scheduled to soon raise the "conforming" limit on such loans nationally to as much as $729, 750. HUD was given until mid-March to revise loans limits for the FHA.
Although the anticipated higher limits for Fannie Mae and Freddie Mac will make conforming loans more affordable, the new loans may be slightly more expensive than mortgage of less than $417,000.
And while the stimulus act will raise lending limits for Fannie Mae, Freddie Mac and the FHA, all of the new limits are scheduled to expire at the end of the year.
SO DON'T DELAY!!! GIVE ME A CALL RIGHT AWAY!!!



Excerpts taken from signonsandiego.com by Emmet Pierce

Mortgage Meltdown-Part 2 Next Steps

There have been several highlights over the last 30 days in the real estate and mortgage market.
Here are few not so positive highlights:
1.) More lenders have gone out of business
2.) Credit and underwriting guidelines are extremely tight.
3.) Prices are down in some areas.
4.) You must have a down payment.
5.) Foreclosures are at an all time high.

There are however some bright spots…
1.) Federal has cut rates by half.
2.) FHA loan programs guidelines relaxed.
3.) As property prices decreases, more opportunity more negotiations.
4.) Easing of rates.
5.) Possible lessening guidelines.

With that said we are going to focus on the positives and where we can look for opportunity.
Late August Bush came out with FHA-Reform. This will allow borrowers that have had good credit (no mortgage lates) to refinance the mortgage loan after there ARM resets.

Another bright spot is the Fed rate cut. The best outcome from the cut is that it has helped the publics psyche encouraging more of you to get back into the market.

So where are the Lenders?...
There is a slight give in underwriting guide lines. Lenders have added back some programs:
· 97 % LTV with a 500 credit score
· Some hybrid ARMs (fixed ARMs) are added back
· There is still 100% financing at $417,000 or below loan amount
· We are anticipating an increase in the conforming loan limit from $417,000 to $500,000

Remember we are promoting building wealth through real estate. It is ALWAYS a good time to buy!!
If you like the property and the numbers make sense, GO FOR IT! Real estate is a long term investment. You build wealth over time.