News
3/05/2008
In recent days President Bush has tried to kick start our economy with his economic stimulus package. A major initiative is to head off the deteriorating housing market and credit crunch. A major highlight of this package is the increase in the conforming loan limits to $729,750. In the United States a conforming loan is a mortgage loan that conforms to the guidelines of a GSE (government sponsored enterprise). These firms, Fannie Mae and Freddie Mac, have the governments backing and support which allows them to have lower costs than there competition; this is usually passed on to the consumer in the form of a better rate; usually in the range of 3/8's. Raising the conforming loan limits to $729,750 will allow more borrowers to qualify for these conforming loans which have proven to have lower rates. Allowing home owners who have seen there overall home values increase in the past 5 to 10 years to qualify for conforming loans will help the overall housing and mortgage market. Raising the limits from the recent $417,000 limit to $729,750 will fall in line with the home values along the pacific and Atlantic coast lines. The new $729,750 conforming limit will also allow borrowers who could not find home financing through non-conforming lenders, because of the global credit crunch, to refinance there existing ARMs into a higher quality loan that will put an end to the rapid rise of foreclosures. Stopping the foreclosure avalanche is just one of the benefits on the new $729,750 conforming loan limit, by raising the conforming limits the president has also enabled would be consumers access to the equity in their houses. The $729,750 conforming loan limit allows people access to these high quality and cheaper government loans instead of the high cost credit cards and other alternatives. Buying that new car, sending a kid to college or just retiring on your own terms is now available to so many more Americans because of the new $729,750 loan limit.
Overall raising the conforming loan limits to$729,750 will allow more homeowners to get out of "bad" loans; it will also allow consumers to be just those consumers; which in turn will ignite our economy. So lets all get ready to refinance and purchase our way into a more stable housing market and economy with the help of a raise, as raise in the conforming loan limits to $729,750.
Below you will see a list of the cities that will benefit the most from the new limits.
SOUTHERN CALIFORNIA MARKET - LOS ANGELES, LONG BEACH- METRO $729,750.00
| Increased Loan Limits | ||||
|---|---|---|---|---|
| State | Code | CBSA/MSAD Name | Estimated Median Value | Adjusted Conforming Limits: 125% of max median price and <= 175% * current conforming limit |
| AZ | 22380 | Flagstaff, AZ | $360,000 | $450,000 |
| CA | 31084 | Los Angeles-Long Beach-Glendale, CA | $588,400 | $729,750 |
| CA | 36084 | Oakland-Fremont-Hayward, CA | $825,400 | $729,750 |
| CA | 37100 | Oxnard-Thousand Oaks-Ventura, CA | $589,000 | $729,750 |
| CA | 41500 | Salinas, CA | $590,000 | $729,750 |
| CA | 41740 | San Diego-Carlsbad-San Marcos, CA | $589,300 | $729,750 |
| CA | 41884 | San Francisco-San Mateo-Redwood City, CA | $825,400 | $729,750 |
| CA | 41940 | San Jose-Sunnyvale-Santa Clara, CA | $852,500 | $729,750 |
| CA | 42044 | Santa Ana-Anaheim-Irvine, CA | $588,400 | $729,750 |
| CA | 42100 | Santa Cruz-Watsonville, CA | $610,000 | $729,750 |
| CA | 34900 | Napa, CA | $567,500 | $709,375 |
| CA | 42020 | San Luis Obispo-Paso Robles, CA | $559,568 | $699,460 |
| CA | 42220 | Santa Rosa-Petaluma, CA | $498,750 | $623,438 |
| CA | 13860 | Bishop, CA | $480,000 | $600,000 |
| CA | 42060 | Santa Barbara-Santa Maria-Goleta, CA | $470,000 | $587,500 |
| CA | 46020 | Truckee-Grass Valley, CA | $447,000 | $558,750 |
| CA | 46700 | Vallejo-Fairfield, CA | $424,000 | $530,000 |
| CA | 44700 | Stockton, CA | $391,230 | $489,038 |
| CA | 40140 | Riverside-San Bernardino-Ontario, CA | $390,000 | $487,500 |
| CA | 33700 | Modesto, CA | $381,884 | $477,355 |
| CA | 40900 | Sacramento--Arden-Arcade--Roseville, CA | $381,884 | $477,355 |
| CA | 46380 | Ukiah, CA | $381,884 | $477,355 |
| CA | Alpine | County | $381,884 | $477,355 |
| CA | Mono | County | $381,884 | $477,355 |
| CA | Calaveras | County | $381,884 | $477,355 |
| CA | 32900 | Merced, CA | $377,245 | $471,557 |
| CA | Amador | County | $355,000 | $443,750 |
| CA | 38020 | Phoenix Lake-Cedar Ridge, CA | $350,000 | $437,500 |
| CA | Summit | County | $345,000 | $431,250 |
| CA | 31460 | Madera, CA | $340,000 | $425,000 |
| CA | 49700 | Yuba City-Marysville, CA | $339,744 | $424,680 |
| CA | 39820 | Redding, CA | $338,900 | $423,625 |
| CO | 20780 | Edwards, CO | $525,000 | $656,250 |
| CO | San | Miguel County | $381,884 | $477,355 |
| CO | 14500 | Boulder, CO | $367,500 | $459,375 |
| CO | La | Plata County | $355,000 | $443,750 |
| CT | 14860 | bridgeport-stamford-norwalk, CT | $491,100 | $613,875 |
| CT | 25540 | Hartford-West Hartford-East Hartford, CT | $351,300 | $439,125 |
| FL | 28580 | Key West, FL | $676,500 | $729,750 |
| FL | 34940 | Naples-Marco Island, FL | $420,000 | $525,000 |
| FL | 22744 | Fort Lauderdale-Pompano Beach-Deerfield, FL | $381,884 | $477,355 |
| FL | 33124 | Miami-Miami Beach-Kendall, FL | $381,884 | $477,355 |
| FL | 48424 | West Palm Beach-Boca Raton-Boynton Beach | $381,884 | $477,355 |
| FL | Walton | County | $381,884 | $477,355 |
| FL | 14600 | Bradenton-Sarasota-Venice, FL | $353,789 | $442,237 |
| HI | 26180 | Honolulu, HI | $649,900 | $729,750 |
| HI | 27980 | Kahului-Wailuku, HI | $595,000 | $729,750 |
| HI | 28180 | Kapaa, HI | $640,000 | $729,750 |
| ID | 27220 | Jackson WY-ID | $475,000 | $593,750 |
| ID | Blaine | County | $381,884 | $477,355 |
| MA | 14484 | Boston-Quincy, MA | $414,700 | $518,375 |
| MA | 15764 | Cambridge-Newton-Framingham, MA | $414,700 | $518,375 |
| MA | 21604 | Essex County, MA | $414,700 | $518,375 |
| MA | 12700 | Barnstable Town, MA | $410,000 | $512,500 |
| MA | Nantucket | County | $381,884 | $477,355 |
| MA | Dukes | County | $381,884 | $477,355 |
| MD | 13644 | Bethesda-Frederick-Gaithersburg, MD | $480,390 | $600,488 |
| MD | 47894 | Washington-Arlington-Alexandria, DC-VA-M | $480,390 | $600,488 |
| MD | 12580 | Baltimore-Towson, MD | $381,884 | $477,355 |
| MD | Garrett | County | $350,000 | $437,500 |
| MD | 36180 | Ocean Pines, MD | $349,999 | $437,499 |
| NC | 28620 | Kill Devil Hills, NC | $368,000 | $460,000 |
| NH | 40484 | Rockingham County-Stafford County, NH | $414,700 | $518,375 |
| NJ | 35644 | New York-Wayne-White Plains, NY-NJ | $550,900 | $688,625 |
| NJ | 36140 | Ocean City, NJ | $479,000 | $598,750 |
| NJ | 20764 | Edison, NJ | $430,000 | $537,500 |
| NJ | 12100 | Atlantic City, NJ | $363,000 | $453,750 |
| NJ | 45940 | Trenton-Ewing, NJ | $351,640 | $439,550 |
| NM | 42140 | Santa Fe, NM | $341,145 | $426,432 |
| NV | 23820 | Gardnerville-Ranchos, NV | $445,000 | $556,250 |
| NV | 39900 | Reno-Sparks, NV | $381,884 | $477,355 |
| NY | 35004 | Nassau-Suffolk, NY | $470,000 | $587,500 |
| NY | 39100 | Poughkeepsie-Newburgh-Middletown, NY | $355,000 | $443,750 |
| OR | 13460 | Bend, OR | $358,000 | $447,500 |
| OR | 32780 | Medford, OR | $338,000 | $422,500 |
| PA | 35084 | Newark-Union, NJ-PA | $459,700 | $574,625 |
| PA | 49620 | York-Hanover, PA | $339,669 | $424,587 |
| UT | 41620 | Salt Lake City, UT | $381,884 | $477,355 |
| VA | 49020 | Winchester, VA-WV | $380,000 | $475,000 |
| VA | 16820 | Charlottesville, VA | $340,000 | $425,000 |
| WA | 42644 | Seattle-Bellevue-Everett, WA | $394,700 | $493,375 |
| WA | 45104 | Tacoma, WA | $394,700 | $493,375 |
| WA | San | Juan County | $381,884 | $477,355 |
| WA | 14740 | Bremerton-Silverdale, WA | $380,000 | $475,000 |
| WA | Jefferson | County | $350,000 | $437,500 |