Conforming Loan Limits Continue to Impede Housing Recovery

Conforming Loan Limits Continue to Impede Housing Recovery

The availability, or lack thereof, of mortgage financing has been one of the biggest factors impacting the pace of the housing market recovery. Loan limits on federally-backed mortgages have not kept pace with the rise in housing prices, particularly in high cost markets such as core-market California. For example, in Los Angeles County, the conforming loan limit is $625,000, which is insufficient to finance many homes in the submarket. The benefits to borrowers in qualifying for a federally-backed mortgage, include: lower downpayment requirements, as low as 3%; lower credit score thresholds, as compared to a private jumbo loan; and, lower interest rates.

Read More

Previous Chinese Developer, Landsea, Makes Splash in Orange County
Next Headwinds at Home Causing Pause in Chinese Buying

About author

Michael Anderson
Michael Anderson 249 posts

Over the course of his 30-year career, Michael Anderson has worked in the residential development industry in the Pacific Northwest, Northern California and Southern California. He has acquired residential land in excess of $300M for both land development and homebuilding entities and has overseen the construction of approximately 2500 homes. Currently, in semi-retirement, and based out of Newport Beach, CA, Michael continues to invest in and stay abreast of the land markets.

View all posts by this author →

You might also like

Housing Market

Six Housing Market Predictions for 2017

If economic indicators are any guide, Orange County’s housing market is heading for a fifth straight year of rising home prices, increased sales, more rent hikes and booming home construction.

Housing Market

Homebuilder Confidence Reaches 12-Month High

By Kelsi Maree Borland LOS ANGELES—Single-family developers are becoming more optimistic about the home market as a result of loosened regulations from the new administration, GlobeSt.com reports in this EXCLUSIVE

Housing Market

Lots: Builder’s Two Big Questions in 2017

Two difficult questions confront home builders and residential developers amid the uncertainty of the moment, and we’ve been hearing them in the aisles and off the floor during the home