Mortgage loan limits

Mortgage loan limits continue to be a topic of much debate in Washington DC:

Last week the Mortgage Bankers Association put out a statement by their President, David Stevens, advocating a continuation of the higher loan limits at Fannie, Fredie and FHA for one more year. The temporary loan limits authoized by Congress have benefited consumers and the housing market during what has been a turbulent period for our nation's economy," Stevens said in the statement. He went on to say "It looked very clear at the beginning of the year that we were heading toward a flattening of the market, but we've seen clearly an impact to the housing market which is not solely a result of the U.S. economy. It's brought on by general uncertainties: Oil prices spiked for a while, which hit confidence, there were a lot of impacts both domestically and internationally" "I think the view right now that I have is that this is a relatively inexpensive initiative that could support the housing market at a time when pulling back makes no sence." He also said private capital is still too nervous about the state of housing to come back in force now. As for the FHA, which he has maintained has too large a market share right now, "If FHA is still too big, it is the sign of an unhealthy system, but it doesn't mean pulling back is the right answer. We must continue providing support."


As President of San Diego Funding, I pre-approve many first time and buy-up potential home buyers and agree that it is very important to keep the higher loan amounts for another year. The housing market is still too fragile to lose any incentive that helps buyer's obtain financing. It is not helping the wealthy segment but the middle class which is imperative to the recovery in housing.

Linnea Arrington

President

San Diego Funding

2468 Historic Decatur Road #160

San Diego, CA 92106

ph: (619)260-1660 ext. 250

fax: (619)574-6735

email: linnea@sdfunding.com