Santa Barbara Mortgage Market Update: Changes to Maximum High Loan Balance
It is expected that Congress will be allowing legislation to expire on temporary higher loan limits, reverting loan limits to lower permanent high balance levels as opposed to extending these high loan limits. As the Government segments have yet to publicize the specific lowering strategies they will put into effect, the total impact of these projected actions is still undetermined.
Conventional—Fannie Mae and Freddie Mac:
- A reduction in the maximum high balance loan amount from $729,750 to $625,500 in high-cost markets;
- High balance loan limits continue to be based on county or MSA median sale price, with only the highest cost markets being allowed the maximum loan amount of $625,500;
- Loans already in the pipeline will have a mandatory funding date of September 30, 2011.
Government—FHA and VA:
- HUD has indicated the new maximum loan limits will revert to $625,500, pending notification;
- VA new maximum loan limit allowances are still in discussion;
- MSA median housing costs will continue to drive high balance loan limits on government programs;
- Government loans in pipeline will also have a mandatory funding date of September 30, 2011.
The Zia Group can connect you with the best mortgage officers at the most competitive banks based on the experiences of our clients. Contact Daniel Zia, your Santa Barbara Real Estate Agent today for more information. Or visit our website at http://www.theziagroup.com.