Greg Cowart on Zillow
Greg Cowart - Mortgage Broker or Lender at The Securus Group
Greg Cowart - Roseville Loan Guy

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Conforming loan limits stay the same for 2014…

The Federal Housing Finance Agency (FHFA), overseer of mortgage giants Fannie Mae and Freddie Mac (GSE’s), has decided to leave the maximum loan limits for loans they guarantee unchanged for 2014. The maximum conforming loan limit will remain at $417,000.

As has been the case since 2008 some areas considered “high cost”, including most of California, are still exempt from the $417,000 ceiling with limits that range as high as $625,000 in higher priced counties in the Bay Area and Southern California.

For the greater Sacramento area (Sacramento, Placer, and El Dorado County) the “High Balance Conforming” limit remains at $474,950. Unchanged for at least another year.

fannie-mae-freddie-mac-roseville-mortgageEarlier this year FHFA director Edward DeMarco made an announcement that he would like to reduce the limits for 2014 in some areas in an attempt to take the FHFA further out of the market and foster more investment from the private sector.  Before that happened Congress protested the idea as harmful to homeowners and said that it would hurt the real estate market and economy before it has had a chance to fully recover from the crash of 2008 and recession that followed (and they were right about that). In addition to this DeMarco is on the way out and North Carolina US Congressman Mel Watt is nominated for the director’s job and he is seen as very pro-home-ownership, something that may well have made the FHFA decision easier.

We have a lot of buyers and sellers in Roseville, Rocklin, Granite Bay, Folsom, and El Dorado Hills this will affect (or won’t affect as the news is that the limits are not changing, but you get the point), very good news for people with at least a 10% down payment in the $500-800,000 price range. Likewise a good thing for people selling a home in that price range as well.

Sincerely,

Greg Cowart

Senior Mortgage Advisor – 17 Years Experience

(916) 412.3313

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