We all know that we live in one of the most expensive areas in the country. You’d think that the powers in Washington knew that, too, but they sure didn’t act as though that was the case. Perhaps it was the Bush Administration who hated anything California and because of that they penalized the entire state. I sure don’t know any more than you do but California is now a powerhouse in Washington and we now have an administration who wants to help us now.
They give. They take. And now, they’ve given again but this time, with strings on it, and only for 2009. What am I talking about? Congress and conforming loan limits. California, and especially our Fantasy Island right here in San Mateo and Foster City, 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 now find ourselves in as a 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 Congress gave they also took it away and by the middle of December, 2008, the FHA loan limits were reduced. Sure, they were still much higher than the $417,000 that we saw forever, but they were reduced to $625,500 for 2009 although it really took place by the middle of December. That’s were we thought prevailing loan rates would remain, but we were wrong.
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 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.
