Big Homes, Lower Limits: Changes Coming on Mortgage Rules
Back in 2008, limits on “conforming” mortgages were upped to levels as high as in the $700,000 range for highly affluent areas. Now, thanks to our ongoing mortgage and housing crisis, the government is about to reel in conforming loan limits to between $400,000 and $600,000. What does this mean? Well, in higher-priced markets like Washington DC and Monterey, California, those higher-dollar homes will be inaccessible without a 20-30% down payment (as required by “jumbo” mortgages) and over 1 million homes nationwide will be pushed out of the “conforming” loan limits.
But there’s upside to the equation: a potential pressure on home prices on the giants to be lowered so that they meet with conforming loan limits. It’s something to think about if you own a home you’re about to list with a heftier than usual price tag. In order to attract the widest range of buyers, meeting the conforming loan limits might well prove to be your goal. It’s a great conversation to have with your Realtor, who can get you up to speed on recent market trends and find out if Jumbo loans have been used to close recent sales in your area.
As you head out to enjoy yet another superb fall weekend, check out our local events calendar. We keep it up to date with the best of what’s going on in the San Juans. After all, this is our backyard, too and we love living here. This way , we make it easy for everyone to see why we love calling it home!
Until next week ~
The Staff at San Juan Realty, Inc.
