They give. They take. And now, they’ve given again but this time only for 2009. What am I talking about? Congress and conforming loan limits, my friend. California, and especially our Fantasy Island, San Mateo County, have some of the highest prices for homes in the continental US.. We all know this but until last year, those elected officials in Washington, DC refused to do very much about it. Thanks to the financial mess we are in this country, Congress did address our housing costs last year and gave us the highest conforming loan limits ever, $729,750. Wow, we did cartwheels, for a while.
But, just as they gave, they also took it away and by the middle of December, 2008, the limits were reduced. Okay, they were still much higher than the $417,000 that we saw forever, but were then reduced to $625,500 the middle of December.
Around our area, Millbrae, Burlingame, San Mateo, Foster City, Belmont and San Carlos, we rarely saw a conforming FHA loan because of our high housing prices. Even during the height of the housing bubble, first time buyers for condos were unable to buy without a second loan. Today, these FHA loans are becoming a common and now that Congress has raised the limit back to $729,750 we expect to see this loan used not only for first time buyers but for the move-up buyer who have been priced out of the market for a while
Do you want to have this loan? Then you MUST buy a home in 2009. Do you want to see this loan stay? Lobby Congress. Our own Representative Jackie Speier is working hard to make this a permanent loan level for us and you can send her an e-mail to let her know you want to see this happen.
By the way, these loans can be used to buy a duplex, triplex or fourplex, so you can have your cake and eat it,too. Buy a home to live in and one next door to rent. There are some great buys on duplexes in San Mateo County right now! Become a homeowner and an investor in one home purchase. There are loads of tax advantages to that one, too. Give us a call at 650-696-2820 and we can tell you more about this kind of home ownership.