Congress Failed To Act on extending the conforming loan limits that determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee. Because Congress failed to act the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit in San Diego County will decline to $546,250 from $697,500. This means that the Federal Government will not guarantee a loan that is one dollar over $546,250.
This Means that more than 30,000 California home buyers throughout the State will be effected by the change to the conforming loan limits. Since Congress failed to act these home buyers will have to get a Non-conforming or jumbo loan that typically carry's a higher mortgage interest rate than a conforming loan. Now they will be required to have a higher down payment and it will increase their monthly payment. This will negatively impact the housing affordability for these and other California home buyers and will probably cause them to not buy a home. At a time when the housing market needs help Congress failed to act.
Before The September 30th Deadline Congressmen Gary Miller, Brad Sherman, and John Campbell as well as Senators Dianne Feinstein and Barbara Boxer all introduced bills that would of either made permanent or extended the loan limit and Congress failed to act.
What We Will Need To Do is stay active and work with our Congressman to continue to fight and get the loan limits back to where they were. I know the National Association Of Realtors and the California Association Of Realtors will continue to remain vigilant in the fight to turn back the loan limits. We cannot afford to let our Congress fail to act again.
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