http://siliconvalleyrealestateinfo.com/proposed-increase-in-the-conforming-loan-limit-will-it-help.html Los Altos Realtor Serving Silicon Valley Buyers and Sellers by Combining Local Insight With Professional Representation Fri, 12 Mar 2010 02:48:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://siliconvalleyrealestateinfo.com/proposed-increase-in-the-conforming-loan-limit-will-it-help.html/comment-page-1#comment-53 John David Fri, 25 Jan 2008 17:37:18 +0000 http://siliconvalleyrealestateinfo.com/proposed-increase-in-the-conforming-loan-limit-will-it-help.html#comment-53 (a) I hate to be the naysayer of the crowd, but after the politicians are done buying votes and realize that they can't jack up the plan with more entitlements and that their candidate is in jeopardy of not winning, the plan will stall. (b) If the plan does go through, then people with high AGI's will get no benefit from the rebates and as far as the Fannie Mae concept that only will be available until Dec of 2008 which probably translates into Sellers forcing buyers to pay more to hang onto the lower rate. If the plan gets approved, then it would potentially start in Apr, so there would be an 8 month window to utilize the new lower conforming rates which the sellers would know that and potentially not move on price or even raise their price. (c) Lastly, this also doesn't take into account the fact that lenders are asking potential clients to have 750 + credit scores, 20% down and 6 months of payments in the bank. (granted not all lenders require this, but banks are afraid to lend - does this fear disappear because the conforming loan limits are raised?) So I ask the questions: Will sellers maintain their price or atleast not raise it, will sellers negotiate in good faith or grind the buyers due to the lending deadline of Dec and lastly will it make a huge impact on the real estate market in the bay area in that 8+ month window? I hope so, but I doubt it. (a) I hate to be the naysayer of the crowd, but after the politicians are done buying votes and realize that they can’t jack up the plan with more entitlements and that their candidate is in jeopardy of not winning, the plan will stall.
(b) If the plan does go through, then people with high AGI’s will get no benefit from the rebates and as far as the Fannie Mae concept that only will be available until Dec of 2008 which probably translates into Sellers forcing buyers to pay more to hang onto the lower rate. If the plan gets approved, then it would potentially start in Apr, so there would be an 8 month window to utilize the new lower conforming rates which the sellers would know that and potentially not move on price or even raise their price.
(c) Lastly, this also doesn’t take into account the fact that lenders are asking potential clients to have 750 + credit scores, 20% down and 6 months of payments in the bank. (granted not all lenders require this, but banks are afraid to lend – does this fear disappear because the conforming loan limits are raised?)
So I ask the questions: Will sellers maintain their price or atleast not raise it, will sellers negotiate in good faith or grind the buyers due to the lending deadline of Dec and lastly will it make a huge impact on the real estate market in the bay area in that 8+ month window? I hope so, but I doubt it.

]]> http://siliconvalleyrealestateinfo.com/proposed-increase-in-the-conforming-loan-limit-will-it-help.html/comment-page-1#comment-52 Conforming Loan Limits may be raised for San Francisco Bay Area borrowers | Coastal Real Estate and Lifestyles Fri, 25 Jan 2008 16:03:58 +0000 http://siliconvalleyrealestateinfo.com/proposed-increase-in-the-conforming-loan-limit-will-it-help.html#comment-52 [...] Dave Blockus, a Realtor with Coldwell Banker in Los Altos points to the the fact that the down-payment will still be an issue for many. [...] [...] Dave Blockus, a Realtor with Coldwell Banker in Los Altos points to the the fact that the down-payment will still be an issue for many. [...]

]]> http://siliconvalleyrealestateinfo.com/proposed-increase-in-the-conforming-loan-limit-will-it-help.html/comment-page-1#comment-51 House passes bill increasing Fannie Mae and Freddie Mac loan limits | Peninsula Real Estate Guru Fri, 25 Jan 2008 05:12:26 +0000 http://siliconvalleyrealestateinfo.com/proposed-increase-in-the-conforming-loan-limit-will-it-help.html#comment-51 [...] David Blockhous a long-time Los Altos resident and real estate agent with Coldwell Banker correctly points out that even if the increase in loan limit is passed it will not have a large effect on the Los Altos Palo Alto Menlo Park market since average prices are over $1.5M so even a $625,000 loan is well under 50% of the normal house price. Of course, the Los Altos Palo Alto Menlo Park real estate market is doing just fine. It is the lower price range that needs help. In the $600,000 to $800,000 price range, the proposed increase will help home buyers. [...] [...] David Blockhous a long-time Los Altos resident and real estate agent with Coldwell Banker correctly points out that even if the increase in loan limit is passed it will not have a large effect on the Los Altos Palo Alto Menlo Park market since average prices are over $1.5M so even a $625,000 loan is well under 50% of the normal house price. Of course, the Los Altos Palo Alto Menlo Park real estate market is doing just fine. It is the lower price range that needs help. In the $600,000 to $800,000 price range, the proposed increase will help home buyers. [...]

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