New Conforming Mortgage Limits for Bay Area Announced
March 7th, 2008 by Peter Frumenti | no responses
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The Department of Housing and Urban Development(H.U.D.) has released the new limits for loans backed by Freddie Mac and Fannie Mae. I have included the limits for each CA county by clicking the following link: conforminglimits.pdf
No surprise that the SF Bay Area Counties have been given the maximum limit of $729,750:
For more information on additional states please click below… You just choose the county and state, fill in the boxes, and use the dropdown menu to choose the type of loan (Fannie/Freddie, FHA or HECM).
https://entp.hud.gov/idapp/html/hicostlook.cfm
This will hugely impact our market here in the Bay Area. The interest rates that have become the most expensive are the Jumbo loans. That is any loan for more than $417,000 you would have to apply for a Jumbo Loan. That means that anyone buying a median priced (mid $500k’s in most Bay Area counties) home would typically have to take a Jumbo Loan. Now your loan limit for conforming rates which are much better than Jumbo has been raised. If you are putting down 20% on a home that is priced around $900k ($912,187.50 to be exact) you would now qualify for conforming rates.
The market has already begun to react to the positive media attention of late. The news of fed cuts, lower mortgage rates, prices in several cities coming down and now the conforming limits news we are hearing are all good for the Bay Area Real Estate Market. I don’t expect to see giant appreciation anytime soon but the confidence of buyers is back and our phone is ringing of the hook. We just received multiple offers on several of our listings and feel the spring will be a great time for buyers to find some great deals and take advantage of all the great opportunities.
PF
For more information on this article or if you just want to talk about the real estate market send me an email: peter@frumenttieam.com.
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The Author: Peter Frumenti
About: A Tri-Valley native, Peter comes from a long line of real estate professionals: his grandfather, grandmother, and father have all served in varying capacities in the real estate industry. Formerly a director of sales and marketing in the hospitality industry, Peter has a strong sales and marketing background, which has served him well at both Keller Williams and Century 21. When Peter is not buying or selling homes for his clients, he serves as a board member for the Viola Blythe Center, a non-profit organization that provides social and humanitarian services. He is active in a number of Tri-City community organizations, as well. Peter serves on the agent leadership council for Keller Williams Benchmark Properties and is a member of the National Association of Realtors and the California Association of Realtors.
This entry was posted by Peter Frumenti, on Friday, March 7th, 2008 at 7:08 am and is filed under Featured, Marketplace. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response on the right, or trackback from your own site.
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East Bay Community Resource by the Frumenti Real Estate Team
A resource for community information and homes for sale. Search by city to find schools, neighborhoods, real estate market information and new home listings in Fremont, Newark, Union City, Hayward, Castro Valley and San Leandro, California. 510-770-1475
