More Chatter on Reinstating High Balance Conforming Loan Limits to $729,750

San Francisco real estate
San Francisco and other Bay Area counties would "light up" with joy if conforming loan limits were raised back to $729,750 photo: Andreas Gronski

Allowing the conforming loan limits to roll back from 729,750 to 625,500 (max determined by county) did nothing to help the Bay Area Real Estate market in the short run. We reacted to the official studies and reviewed the impact zone a few months ago.

It wasn’t proactively lowered; it was a temporary expansion that came during stimulus efforts, and which was allowed to expire. Since the change, there have been a number of efforts to get the limits raised back up through 2013. Congress is currently fighting over discussing it once again, and the verdict is due any day.

In the meantime, the once frigid jumbo market has seen improved conditions, as evidenced by generally expanding product availability and loosening guidelines. So if the conforming limit is not bumped back up, borrowers who are ‘jumbo’ with 625,501 and larger loan scenarios may find that the guidelines have now included them once again.

Might be time to review your situation… Drop a note below, and let’s take a look.

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