Very Critical - New Conforming Limits

As most of you know the stimulus bill which includes raising the conforming limits is due to be signed this week by the President.  This should be effective fairly soon and run through at least the end of this year.

As you can see from the chart below, a good portion of California is expected to get the maximum allowed limit of $729,750.

For those of you who live on the South Coast, it may be time to get active.

Although we haven’t yet heard the official word, there is a strong possibility that Santa Barbara would get lumped in with Santa Maria and therefore only have a maximum conforming loan amount of around  $587,500!

This obviously a) has no bearing on the prices we actually face here and b) significantly affects a number of you who make your living through real estate and/or have loans that might otherwise qualify for the new conforming limits.

Now might be the time to let your representatives in Congress and the Senate know how you feel about such an issue in the hopes that we might get a figure that is more reflective of our reality.  Certainly we stand a better chance of being proactive rather than reactive.

http://www.house.gov/capps/contact/send_an_email.shtml
http://boxer.senate.gov/contact/email/policy.cfm
http://feinstein.senate.gov/public/index.cfm?FuseAction=ContactUs.EmailMe

H.R. 5140 — Increased Loan Limits

Although HUD has 30 days from the final passage of the legislation to provide their official loan limits for your area, the estimated data below can help you get a major head start on your competition! Our team of analysts have researched and referenced a number of trusted sources to compute this data and provide you reasonable estimates of the new loan limits in your area.

Most of the estimated loan limits in this exclusive chart are listed by Metropolitan Statistical Area (MSA). If you are not familiar with what counties are included in each MSA code below, please visit https://entp.hud.gov/idapp/html/hicostlook.cfm, where you can search by State.

NOTE: THESE ARE NOT THE OFFICIAL GUIDELINES FROM HUD. THE OFFICIAL CHART OF LOAN LIMITS WILL NOT BE DELIVERED BY HUD UNTIL 30 DAYS AFTER THE PASSAGE OF THE LEGISLATION.