Extension of Conforming Loan Limits Through 2010

LOS ANGELES--(BUSINESS WIRE)--The U.S. Congress late yesterday passed a congressional resolution extending through 2010 the current conforming loan limits of $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including many in California. President Obama is expected to sign the resolution today or tomorrow as part of a broader piece of budgetary legislation that will prevent a government shutdown.
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the NATIONAL ASSOCIATION OF REALTORS® (NAR) have long advocated making permanent higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits from $625,500 in high-cost areas to $729,750 and extending the limits through 2009. Yesterday’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010.
“There is no doubt that higher loan limits and the federal tax credit for first-time home buyers have helped stabilize California’s housing market over the last year,” said C.A.R. President James Liptak. “C.A.R. applauds our congressional representatives for their actions to extend the higher loan limits through 2010. They now should focus on making higher loan limits permanent.”
The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee.” Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.

Quarterly Newsletter on its way!

Hello friends!

My Quarterly Newsletter is on it's way this week. Be on the lookout!

Senators likely to extend tax credit to end of April 2010

Many of the top Democrats and Republicans expressed support this week to extend or expand the soon-to-expire buyer tax credit.



Most agreed to extend the $8,000 first time home buyer tax credit. Additionally, they plan to expand a $6,500 tax credit to home owners who have been in their home for at least 5 years if they purchase a new primary residence. This is very big news for buyers who thought that ship sailed!



They will also consider making the tax credit available for individuals making up to $125,000/yr and couples making $250,000/yr. This is up from $75,000 and $150,000 respectively. Sweet!

The extension and improvement of the tax credit has a ton of support but still needs to be signed. It's not a done deal yet!!

Baton down the hatches!

The National Weather Service has issued this special statement for Marin county. Be sure to clean out those gutters, cover your patio furniture and do other winter preparations around the house - early!
... HEAVY RAIN AND POTENTIALLY HIGH WINDS EXPECTED TO ACCOMPANY A SIGNIFICANT STORM EXPECTED TO HIT LATE MONDAY INTO EARLY WEDNESDAY OF NEXT WEEK...
A POTENT STORM SYSTEM... ESPECIALLY FOR OCTOBER... WILL MOVE INTO CENTRAL AND NORTHERN CALIFORNIA BEGINNING LATE MONDAY AND CONTINUING THROUGH WEDNESDAY MORNING. THIS WILL BE A VERY DRAMATIC CHANGE FROM THE TYPICAL LATE SUMMER PATTERN THE AREA HAS BEEN EXPERIENCING. THE ORIGINS OF THIS STORM STEM FROM A WESTERN PACIFIC TYPHOON NAMED MELOR THAT HIT JAPAN A FEW DAYS AGO.

Congress might extend frist-time buyer rebate

The real estate industry in California and across the nation is lobbying Congress to extend the credit through next summer. Members of the House and Senate have proposed more than 20 bills to extend and/or expand the credit.

U.S. home prices rise 0.3 percent in July

U.S. home prices rose slightly in July from a month earlier, according to a government index, further evidence the housing market is stabilizing. Lets hope it continues. Crystal ball anyone?

Real Estate Finance Update

The proportion of first-time buyers was high compared to levels seen in the past few years, but whether the concentration of first-time buyers in the current cycle can be maintained depends in part on underwriting standards. The ability of first timers to capitalize on lower home prices has been hampered by tighter lending standards, which heighten the difficulty for a typical first-time buying household to qualify for a loan.

Level of Difficulty in Obtaining Financing

Tighter underwriting standards led to more scrutiny in the process of mortgage application approval. Home buyers experienced a high level of difficulty in obtaining financing for the homes they bought. On a scale of “1” to “10”, with “1” being “very easy” to obtain financing and “10” being “very difficult”, home buyers on average had a level of difficulty in obtaining finance of 8.1. Twenty-seven percent of all buyers responded with a “10”, and 31 percent responded with a “9”. Only 13 percent responded with a “5” or below.

• Home buyers who bought an REO or a bank-owned property experienced the highest level of difficulty in obtaining financing. They rated the level of difficulty an 8.9, compared to a 7.7 for home buyers with a regular market sales, and a 7.6 for short sale home buyers.
• Repeat buyers reported the average rate of difficulty at 8.3, as compared to 7.9 for first-time buyers.