Real deal: Realtors hail FHFA move to raise 2019 conforming loan limits
The Silicon Valley Association of Realtors joined the national, state and other local Realtor associations in applauding the recent Federal Housing Finance Agency’s announcement that it will raise the national conforming loan limit for next year by 6.9 percent. The 2019 conforming loan limit will increase from $453,100 to $484,350. In addition, the limit for high cost areas like San Mateo and Santa Clara counties and most counties in the Bay Area will rise from $679,650 to $726,525. As a result, loan limits will be higher in all but 47 counties or county equivalents across the country beginning on January 1, 2019.
“Realtors have long advocated for making higher conforming loan limits permanent. Counties like San Mateo and Santa Clara with high median home prices have benefited from a loan limit above the national conforming loan limit,” said Bill Moody, president of the Silicon Valley Association of Realtors. “Raising the higher cost conforming limit will greatly help homebuyers in Silicon Valley who are being greatly challenged by high home prices.”
The FHFA conforming loan limits define the maximum one unit single-family mortgage amounts that Fannie Mae and Freddie Mac may finance. They are also used to define the loan limits for the Federal Housing Administration’s program. The limits are important for funding home sales in high cost coastal markets like California. Non-conforming or “jumbo loans” typically have tighter underwriting standards and sometimes 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.
“C.A.R. commends the FHFA for recognizing California’s robust home price increases over the last few years and raising maximum conforming loan limits, which will give tens of thousands of California homebuyers a chance at homeownership” said California Association of Realtors president Jared Martin. “Increasing …read more
Source:: The Mercury News – Business