2009 Conforming Loan Limits Jump

[macromaniac]

SdRealtor,

Please clarify the comment concerning you not being surprised that I am from Ohio as I am not sure where you are going with that….

I rent in the original La Jolla Woodlands off Via Alicante, $1750.00 for a 2 bed 2.5 bath with 1 car garage and 2 patios.

The bump up on the conforming of 70 some thousand is not going to be a major factor to hold up prices at this point. You still have to qualify with full doc and there are substantial rate hits for what is called Jumbo Conforming….

Most anyone that is going to purchase a home at this point and range needs their head examined…..my opinion….

[sdrealtor]

Whether they need their head examined or not they are out there with money, motivation and desire. When that meets financing at better terms that means more sales. The bump up on the conforming to 697K would not be 70K more it would be over $150K. Many of these potential buyers will have cash to put 20% down or more so an increase in the loan limits of $150K raises the bar for them by almost $200K. How many and how quickly they would act is anyone’s guess. Dont think they arent out there. I meet people like that all the time and know I cant be seeing all of them. It would make a difference in the 700 to 900K price range and a significant one at that.

Regarding Ohio thats just a running joke with me. I’m a friendly guy and talk to everyone. Last time I drove cross country (1997) people were nice everywhere with one exception. That exception was Ohio where no one we met was nice or friendly. I laugh because my sample size was limited to front desk clerks, waitresses, gas station attendants, toll takers and random people on the street. Far from scientific. Nonetheless, I still carry with myself a feeling that people from Ohio are very unhappy internally and not nice however unscientific it may be. Of course my rear neighbor over the last 10 years is from Ohio and is just about the friendliest most outgoing guy around but I still laugh about my traipse through Ohio 12 years ago.

[sdrealtor]

Whether they need their head examined or not they are out there with money, motivation and desire. When that meets financing at better terms that means more sales. The bump up on the conforming to 697K would not be 70K more it would be over $150K. Many of these potential buyers will have cash to put 20% down or more so an increase in the loan limits of $150K raises the bar for them by almost $200K. How many and how quickly they would act is anyone’s guess. Dont think they arent out there. I meet people like that all the time and know I cant be seeing all of them. It would make a difference in the 700 to 900K price range and a significant one at that.

Regarding Ohio thats just a running joke with me. I’m a friendly guy and talk to everyone. Last time I drove cross country (1997) people were nice everywhere with one exception. That exception was Ohio where no one we met was nice or friendly. I laugh because my sample size was limited to front desk clerks, waitresses, gas station attendants, toll takers and random people on the street. Far from scientific. Nonetheless, I still carry with myself a feeling that people from Ohio are very unhappy internally and not nice however unscientific it may be. Of course my rear neighbor over the last 10 years is from Ohio and is just about the friendliest most outgoing guy around but I still laugh about my traipse through Ohio 12 years ago.

[sdrealtor]

Whether they need their head examined or not they are out there with money, motivation and desire. When that meets financing at better terms that means more sales. The bump up on the conforming to 697K would not be 70K more it would be over $150K. Many of these potential buyers will have cash to put 20% down or more so an increase in the loan limits of $150K raises the bar for them by almost $200K. How many and how quickly they would act is anyone’s guess. Dont think they arent out there. I meet people like that all the time and know I cant be seeing all of them. It would make a difference in the 700 to 900K price range and a significant one at that.

Regarding Ohio thats just a running joke with me. I’m a friendly guy and talk to everyone. Last time I drove cross country (1997) people were nice everywhere with one exception. That exception was Ohio where no one we met was nice or friendly. I laugh because my sample size was limited to front desk clerks, waitresses, gas station attendants, toll takers and random people on the street. Far from scientific. Nonetheless, I still carry with myself a feeling that people from Ohio are very unhappy internally and not nice however unscientific it may be. Of course my rear neighbor over the last 10 years is from Ohio and is just about the friendliest most outgoing guy around but I still laugh about my traipse through Ohio 12 years ago.

[sdrealtor]

Whether they need their head examined or not they are out there with money, motivation and desire. When that meets financing at better terms that means more sales. The bump up on the conforming to 697K would not be 70K more it would be over $150K. Many of these potential buyers will have cash to put 20% down or more so an increase in the loan limits of $150K raises the bar for them by almost $200K. How many and how quickly they would act is anyone’s guess. Dont think they arent out there. I meet people like that all the time and know I cant be seeing all of them. It would make a difference in the 700 to 900K price range and a significant one at that.

Regarding Ohio thats just a running joke with me. I’m a friendly guy and talk to everyone. Last time I drove cross country (1997) people were nice everywhere with one exception. That exception was Ohio where no one we met was nice or friendly. I laugh because my sample size was limited to front desk clerks, waitresses, gas station attendants, toll takers and random people on the street. Far from scientific. Nonetheless, I still carry with myself a feeling that people from Ohio are very unhappy internally and not nice however unscientific it may be. Of course my rear neighbor over the last 10 years is from Ohio and is just about the friendliest most outgoing guy around but I still laugh about my traipse through Ohio 12 years ago.

[sdrealtor]

Whether they need their head examined or not they are out there with money, motivation and desire. When that meets financing at better terms that means more sales. The bump up on the conforming to 697K would not be 70K more it would be over $150K. Many of these potential buyers will have cash to put 20% down or more so an increase in the loan limits of $150K raises the bar for them by almost $200K. How many and how quickly they would act is anyone’s guess. Dont think they arent out there. I meet people like that all the time and know I cant be seeing all of them. It would make a difference in the 700 to 900K price range and a significant one at that.

Regarding Ohio thats just a running joke with me. I’m a friendly guy and talk to everyone. Last time I drove cross country (1997) people were nice everywhere with one exception. That exception was Ohio where no one we met was nice or friendly. I laugh because my sample size was limited to front desk clerks, waitresses, gas station attendants, toll takers and random people on the street. Far from scientific. Nonetheless, I still carry with myself a feeling that people from Ohio are very unhappy internally and not nice however unscientific it may be. Of course my rear neighbor over the last 10 years is from Ohio and is just about the friendliest most outgoing guy around but I still laugh about my traipse through Ohio 12 years ago.

[jpinpb]

As I mentioned elsewhere, I rent a 2/2 w/a 2 car garage and a distant panoramic ocean view for 1800/mo.

There is a townhouse for sale in my complex for 395k. Doing quick math, if I just put minimum down, like FHA, so as to no tie up my money, figuring out P&I, taxes, insurance and HOAs of 350/mo, I would be paying considerably higher than my rent, even w/a tax write-off. Makes no sense.

Before the bubble, the 2000/2001 price in this complex was 200k/250k.

There’s already been a short sale down the street and an attempt short sale w/postponed foreclosure on another place in this complex.

Shoud I buy the one for 395k?

[jpinpb]

As I mentioned elsewhere, I rent a 2/2 w/a 2 car garage and a distant panoramic ocean view for 1800/mo.

There is a townhouse for sale in my complex for 395k. Doing quick math, if I just put minimum down, like FHA, so as to no tie up my money, figuring out P&I, taxes, insurance and HOAs of 350/mo, I would be paying considerably higher than my rent, even w/a tax write-off. Makes no sense.

Before the bubble, the 2000/2001 price in this complex was 200k/250k.

There’s already been a short sale down the street and an attempt short sale w/postponed foreclosure on another place in this complex.

Shoud I buy the one for 395k?

[jpinpb]

As I mentioned elsewhere, I rent a 2/2 w/a 2 car garage and a distant panoramic ocean view for 1800/mo.

There is a townhouse for sale in my complex for 395k. Doing quick math, if I just put minimum down, like FHA, so as to no tie up my money, figuring out P&I, taxes, insurance and HOAs of 350/mo, I would be paying considerably higher than my rent, even w/a tax write-off. Makes no sense.

Before the bubble, the 2000/2001 price in this complex was 200k/250k.

There’s already been a short sale down the street and an attempt short sale w/postponed foreclosure on another place in this complex.

Shoud I buy the one for 395k?

[jpinpb]

As I mentioned elsewhere, I rent a 2/2 w/a 2 car garage and a distant panoramic ocean view for 1800/mo.

There is a townhouse for sale in my complex for 395k. Doing quick math, if I just put minimum down, like FHA, so as to no tie up my money, figuring out P&I, taxes, insurance and HOAs of 350/mo, I would be paying considerably higher than my rent, even w/a tax write-off. Makes no sense.

Before the bubble, the 2000/2001 price in this complex was 200k/250k.

There’s already been a short sale down the street and an attempt short sale w/postponed foreclosure on another place in this complex.

Shoud I buy the one for 395k?

[jpinpb]

As I mentioned elsewhere, I rent a 2/2 w/a 2 car garage and a distant panoramic ocean view for 1800/mo.

There is a townhouse for sale in my complex for 395k. Doing quick math, if I just put minimum down, like FHA, so as to no tie up my money, figuring out P&I, taxes, insurance and HOAs of 350/mo, I would be paying considerably higher than my rent, even w/a tax write-off. Makes no sense.

Before the bubble, the 2000/2001 price in this complex was 200k/250k.

There’s already been a short sale down the street and an attempt short sale w/postponed foreclosure on another place in this complex.

Shoud I buy the one for 395k?

[sdrealtor]

Thats up to you but if you could get it at 350K w/ 20% down your loan is 280K. At todays rates thats about $1400 per month add your 350/month and you are at rental value without factoring in tax benefit.

If you were truly interested in buying it as a long term home that is how you would purchase it not as an FHA buyer as you have the means to (at least I think you do). In that case, it could make sense at 350K or higher when you consider tax benefits. Plus the gubment gonna give you $8K this year which would cover all your closing costs.

Of course, if it is more of an investment decision the cash flow would be more than offset by the expectation of lower prices to come.

Keep waiting or get on with living. Thats your choice. I’m stuck thinking about all this nonsense all day. Someday I hope you dont have to anymore.

[sdrealtor]

Thats up to you but if you could get it at 350K w/ 20% down your loan is 280K. At todays rates thats about $1400 per month add your 350/month and you are at rental value without factoring in tax benefit.

If you were truly interested in buying it as a long term home that is how you would purchase it not as an FHA buyer as you have the means to (at least I think you do). In that case, it could make sense at 350K or higher when you consider tax benefits. Plus the gubment gonna give you $8K this year which would cover all your closing costs.

Of course, if it is more of an investment decision the cash flow would be more than offset by the expectation of lower prices to come.

Keep waiting or get on with living. Thats your choice. I’m stuck thinking about all this nonsense all day. Someday I hope you dont have to anymore.

[sdrealtor]

Thats up to you but if you could get it at 350K w/ 20% down your loan is 280K. At todays rates thats about $1400 per month add your 350/month and you are at rental value without factoring in tax benefit.

If you were truly interested in buying it as a long term home that is how you would purchase it not as an FHA buyer as you have the means to (at least I think you do). In that case, it could make sense at 350K or higher when you consider tax benefits. Plus the gubment gonna give you $8K this year which would cover all your closing costs.

Of course, if it is more of an investment decision the cash flow would be more than offset by the expectation of lower prices to come.

Keep waiting or get on with living. Thats your choice. I’m stuck thinking about all this nonsense all day. Someday I hope you dont have to anymore.

[sdrealtor]

Thats up to you but if you could get it at 350K w/ 20% down your loan is 280K. At todays rates thats about $1400 per month add your 350/month and you are at rental value without factoring in tax benefit.

If you were truly interested in buying it as a long term home that is how you would purchase it not as an FHA buyer as you have the means to (at least I think you do). In that case, it could make sense at 350K or higher when you consider tax benefits. Plus the gubment gonna give you $8K this year which would cover all your closing costs.

Of course, if it is more of an investment decision the cash flow would be more than offset by the expectation of lower prices to come.

Keep waiting or get on with living. Thats your choice. I’m stuck thinking about all this nonsense all day. Someday I hope you dont have to anymore.

[Author]

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