Home Buyers San Diego


Conforming Loans: San Diego County

March 2009:
In federally designated metropolitan areas, qualified customers may be able to borrow up to $625,500 on conforming or FHA loans without paying the typical higher interest rates on jumbo loan amounts. San Diego County maximum for conforming loans is $546,250, as of early March 2009. (Till end of 2008 it was $798,500)

The end of March 2009 the conforming limit will be raised back to $798,500!!

The conforming loan rate

San Diego County will go to $697,500 and may be even higher in spot areas as we learn more. Currently the loan limit was set at $546,250.

TO REMAIN $417,000 IN 2009;

Release: November 7, 2008

The Federal Housing Finance Agency (FHFA) today announced the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties. The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009.

According to provisions of the Housing and Economic Recovery Act of 2008 (HERA), the national loan limit is set based on changes in average home prices over the previous year, but cannot decline from year to year. Loan limits for two-, three-, and four-unit properties in 2009 will remain at 2008 levels as well: $533,850, $645,300, and $801,950 respectively, for homes in the continental U.S.

Homes for Sale in Kensington, San Diego county:
Kensington Real Estate

September 2011:
What???? Even Lower Rates. Get a 2.550% Loan at a reliable bank with 20% down, and no points!! See all Rates for Home Loan Mortgage for September 2011.

Conform Loan Limits Important?

Conform Loan Limits 2010

Conforming Home Loan Rates
Home Loans < $417.000
30-Year Fixed 4.250% - APR 4.433%

Conforming - Larger Amounts

30-Year Fixed 4.375% - APR 4.508%
Larger Loan Amounts in Eligible Areas In federally designated metropolitan areas, conventional and FHA loan limits have been increased to assist home buyers. These loan amounts are higher than the typical conforming limits set by Fannie Mae and Freddie Mac. Because the amount financed is not as high as a jumbo loan, they typically offer lower interest rates than traditional jumbo loans.

Jumbo Home Loan Rates
Loans 625.5000 and up
30-Year Fixed 4.875% - APR 5.012%

Interest Rates for Home Buyers and Re-financing.

Conform Loan Limits 2007 - 2008

As still a significant amount of homes in San Diego County are being sold in the $800,000 - $1,100,000 range, being able to borrow money at a reasonable rate is important. Last year the Jumbo rate went up to 8% -9% for a 30 year fixed above $697,500. Early this year the conforming loan limit went back to $546,250 for San Diego County.

Jumbo loans: 40% higher cost!

Currently having a 6.5% rate for Jumbo loans and 4.875% for conforming loans makes it very interesting to buy up to $650,000 (assuming 20% down on a $546,250 house, at the low 4.875% rate. The cost for that same house when it is $10k more expensive and comes in the jumbo rate will be almost a 40% hike in cost!!!

Return of the higher conforming loan limit!??

Currently (March 2009) congress is finalizing a bill to get higher conforming loan rates in place to keep the economy going. A big part of this plan are the subsidized government loans (Fannie Mae/ Freddie Mac), paid for with your tax money, and you just get it at the Welssfargo, Bank of America on the corner.

If the rate goes back to $697,500 for San Diego County, it will make it very attractive to buy/ refinance for people with 20% down and good credit to lower their cost to buy/ re-finance their home.

Stimulus Act

Under rules set forth in the Stimulus Act, loans originated in 2008 and the second half of 2007 are subject to limits of 125 percent of local price medians up to a maximum of $729,750.

Note: as a new loan takes 30+ days, since December 1, 2008 the conforming loan limit in San Diego of $697,500 is longer supported.

As a result of the difference in the formula for determining high-cost area limits, many of the high-cost area loan limits are different for 2009 than they were for 2008. They are generally lower because of the lower median price multiplier in HERA (i.e., loan limits are 115 percent rather than 125 percent of median prices) and the lower ceiling ($625,500 rather than $729,750). For loans originated during the period covered by the Stimulus Act, the higher of those limits and the 2009 limits will apply.


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