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As a reminder to our buyers and sellers, the higher conforming loan balance amounts are set to shift down from $697,500 in San Diego to a possible $550,000.  The amounts are not set yet by the Federal Housing Administration.  The governmental stimulus package is set to expire in September, and without intervention from Congress, lenders will start putting deadlines on applications taken with these high loan amounts. Several lenders have already set a July 15th deadline on new applications for high balance loans to ensure closing by the deadline.

Barring government policy change, those wanting to borrow over the new government limit will have to pay a higher rate on the remaining balance. This is due to the increased risk to the lender, as the government will no longer guarantee the loan in case of default.

We will keep you updated as they set the new rate limits or change/extend government support!

The Lund Team, Inc