Current conforming loan limits are scheduled to expire Friday, Sept. 30. The maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum. The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.
It is well known that as Real Estate goes, so goes the economy. Then why does the current administration allow the reduced loan amount for conforming loans, put a 3.8% tax on the sale of Real Estate (starting next year), attempting to reduce home loan interest deductability and challenge prop 13 which keeps property taxes affordable for millions of Californians???? Hard to believe.
