San Jose High-Balance Conforming Loan Limits Changing Soon

High-Balance conforming loan limits will be changing soon in San Jose. These are loans for amounts between $417,000 and $729,000 in certain counties. They will be going back to $625,000 by the end of September, so if you plan on buying a house over that amount, you should consider doing so before then if you want to have more purchasing power.

FHA Mortgage Loans

Some are rumbling at the thought of raising the required down payment on FHA loans from 3.5% to 5%. Banks like to think that making buyers have more of their money in the transaction will help prevent defaults, but most consumers believe that demanding more money as a down payment would make it harder for first time homebuyers to buy.

Also, we all know that the paperwork for getting a loan has doubled over the last 10 years. The Consumer Financial Protection Bureau is trying to simplify loan disclosures by creating a new form to be added to your loan application via their KNOW BEFORE YOU OWE campaign. Their concern is that the current Good Faith Estimate introduced last year hasn’t been helpful in explaining all of the fees that the borrower accumulates. In 2010 a new GFE was introduced for the same reason, and has been met with complaints from both consumers and lenders. Hopefully they can get it right this time.

Interest Rates are Still Low

Interest rates are holding steady this week and are still low. I can close a purchase loan in 18 days or less, so please, if you know someone who is looking to buy or refinance a home in California, don’t keep my name a secret. Imagine how good you’ll feel when they thank you for introducing them to a person like me who can help them.