Loan Limits Lower!

Bank of America has decided to stop accepting conventional and government applications for loan amounts that will exceed the new loan limit amounts 3 months before all other banks. 

According to Bank of America, conventional (20% downpayment) loans that are above the new loan limits will be required to use non-conforming programs (that means higher interest rates or all cash.)

The loan limit will drop to $625,500.00 on October  2011 from the current $729,750.00 although the majority of counties will fall below that number.

The San Diego Real Estate Cafe Crew believes that now is not the time to ask people to pay more money.  The housing market has taken a step back, incentives have been halted and now the loan limit implies more money out of the buyer’s pocket in an area where real estate costs a pretty penny due to beautiful beaches, perfect weather and wonderful people. 

If this leads to declining prices then it only makes sense that there will continue to be more money lost if property values decline.