High-Balance Loan Limits Set To Expire
People ask me all the time "Should I be concerned with that?" Well, this is something that you may wanna pay attention to. This is just a reminder about an upcoming deadline that will impact home buyers whose mortgage loan amount will be around $700,000; Fannie Mae’s conforming loan limit is scheduled to drop to $625,500 after Sept. 30, 2011.
In high-cost areas like here in Southern California and especially in South Bay real estate, any loan originating on or before September 30, 2011 will continue to be moderated by the current $729,750 maximum loan limits. However, unless we see another extension, any loans originated on or after October 1, 2011, will be considered at the new max limit of $625,500.
Buying Or Selling My Home
How will this affect my sale or purchase? It could have a significant impact on the local real estate market. A smaller pool of buyers will be able to qualify for the same home after this date. Now might be the time to sell.
If you have any questions about this or any other changes in the market, please never hesitate to call me. I make it my business to remain current on everything that impacts your bottom line so your transaction is always as seamless as possible.
For city/county details on this Fannie Mae change, please click http://www.fhfa.gov/Default.aspx?Page=185.