Higher Loan Limits

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Submitted by sdrealtor on March 2, 2009 - 11:03am

Just bumped into a loan broker that is pretty well connected. He said the Super Conforming loan limits are about to go back up to $697K and that they are getting ready to roll out the pricing engines for them in the next 2 to 3 weeks. Not that it will save the market but it does seem to be arriving just in time to add a little strength to the market up to $900K this Spring.

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sdrealtor, I already talked
Submitted by macromaniac on March 2, 2009 - 12:14pm.

sdrealtor,

I already talked about this over two weeks ago here on this forum. Ask him about the HITS on the super conforming loan rates over 417K. This will not help much of anything as the rates are sky high...

If you stay under the 417K limit and have an LTV under 70%, Good FICO's, and its rate and term, then you get good rates.....not to mention no more STATED INCOME all FULL DOC.

I am optimistic today that asset prices will continue to deflate as they should to get into proper alignment with incomes....

I agree with the contniued
Submitted by sdrealtor on March 4, 2009 - 3:38pm.

I agree with the contniued deflation to re-balance asset values with incomes.

He beleives rates wll be low 5's. I beleive it will help. This is in no way saying that long term this will save the market. However, claiming this will help no one and have no impact is naive from where I sit.

OK! They are here! Just got
Submitted by sdrealtor on March 4, 2009 - 3:40pm.

OK! They are here! Just got an update:

FHA loan limits of $697,500 effective immediately for San Diego County. Same for conforming loan limits. Still waiting to hear what rates look like but it will be interesting to see what impact the higher limits have. He said they will be funding the new loan limits as of next week.

Sounds like the US govt is
Submitted by peterb on March 4, 2009 - 4:27pm.

Sounds like the US govt is getting closer to owning the mortgage market entirely.

sd, You are going to see more
Submitted by macromaniac on March 4, 2009 - 4:56pm.

sd,

You are going to see more hits and fees over 417K unless they overhaul these guidelines also....it is day to day with these idiots.

As far as I am concerned they should have NEVER raised the conforming loan limits beyond 417K because they are to be determined by median home value not overinflated asset prices. They should ACTUALLY be lowering the limits to adjust to current median home prices.....

It was ass backwards and a violation of their own metrics when they pumped it to the high 600's awhile back but they had to do that because the secondary market went bye bye and the TAXPAYER was the only one left to keep the market liquid and buy the loans from banks...GSE's Government Sucking Entities

MM, I disagree with none of
Submitted by sdrealtor on March 4, 2009 - 6:14pm.

MM,
I disagree with none of your logic. With that said they are here and they will make a difference so deal with it. What should be, isnt. What never should happen, happens. Life aint fair!

It's frightening to see FHA loans with almost no money down for nearly $700K. That is part of what created this mess, though the non-existent underwriting standards was the much bigger issue.

Spring just a little brighter for homesellers.

Talk about creating an
Submitted by peterb on March 4, 2009 - 7:13pm.

Talk about creating an inviting environment for the greater fool!!

I am starting to think that
Submitted by denverite on March 5, 2009 - 10:59am.

I am starting to think that all these programs amount to, in the bigger picture, nothing. We (piggs) are all hand-wringing at each turn of events, but really, as many have said before, the handwriting is on the wall, and it doesn't look pretty.

Good news. Now maybe I will
Submitted by Oxford on March 5, 2009 - 11:15am.

Good news. Now maybe I will get an offer. Just lowered the price on my LCV home to $914,500. Com'on FED, loosen up that cash so I can move on with my life.

It's weird on my side of the yard sign. :(

OX

Hang in there Oxford, I see
Submitted by DodgerBlue on March 7, 2009 - 2:08pm.

Hang in there Oxford, I see you dropped the price another $15K today.

We recently sold, took us about 35 days. Price it right, make sure it looks like a buyer just needs to bring their clothes and that they don't have to do *anything* to move in, and it will sell. Don't do these and you'll be chasing the market down, which is not fun.