Part of the Presidents Stimulus package is raising the mortgage loan limits from $417,000 to $625,000. This would be a good thing for California real estate as well as other States with the price point that we have too. Walnut Creek home prices need this increase. Most of the San Francisco East Bay Area needs this increase.
It makes perfect sense to increase the Conforming loan limits to $625,000 because many home buyers in Contra Costa County have a $417,000 first and a second mortgage for the remainder. In theory, they already have this debt and we certainly have the income in the Bay Area to service this debt.
Fanny Mae and Freddie Mac are the quasi-governmental agency that wervicde these loans. They have proven to be a very responsible resource for homeowners ans well as investors. Increasing the loan limits in California are an absolute HOME RUN!