As a realtor in San Diego, California I was happy to read that they have increased the conforming loan amount for the area ($697,500). This could help thousands of distressed San Diego Homowners who need to refinance. This could give them a better rate to help them keep their home.
The new conforming loan amount can be a great thing, but not to everyone. There are some requirements people have to realize. To qualify it depends on the borrowers FICO score and the borrower has to go full doc and it also depends on their DTI ratio, time on job, etc. What they are telling people in the "newspaper" is you could qualify for 3% down. The problem with this is you would have to pay mortgage insurance with that low of a down payment. These higher thresholds are set to expire at the end of the year, but some lending groups such as the california Associaton of Martgage Brokers are lobbying to make them permanent in such high cost states as California.
Hopefully we can get these to stay and clients can get educated on what it will take to qualify for these loans. I believe it is a step in the right direction for Southern California. If anybody wants more information about San Diego please visit my website at www.encinitasproperties.net
Thanks for listening.....Catherine Barden, Realtor