$729,750 Conforming Loan Limit for Santa Barbara CA. Extended Through 2010

As reported by the National Association of Realtors...

President Obama late last week signed a congressional resolution to extend through 2010 the current conforming loan limits of $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including many in California such as we have here in the Santa Barbara area. Both C.A.R. and N.A.R have long advocated in making these higher conforming loan limits a permanent reality.  As a result of the efforts on behalf of both the C.A.R.’s and NAR’s, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits.  Last week’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010. What does this technically all mean? The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, and the Federal Housing Administration (FHA) can buy or “guarantee.”  Non-conforming or “jumbo loans” as they are commonly know here in Santa Barbara, typically carry higher mortgage interest rates than conforming loans, thus increasing monthly payments and hampering the ability of all of us that live in such a beautiful place as Santa Barbara to purchase homes by making them less affordable. 

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