On October 14, the Federal Government announced plans to spend a large portion of the $700 billion; $250 billion on the purchase of preferred equity stakes in the county's top banks and financial institutions; with the intention of keeping cash flowing throughout the financial network. This will hopefully ensure that banks will continue lending funds to consumers, companies and other banks.
For the San Diego real estate market, the government has recently increased the amount of the conforming loan limit to $546,250; up from $417,000. This increase is intended to enable more borrowers to qualify for more favorable loan terms offered them by this revision in the program. Local home owners may take this opportunity to refinance their existing loans to new, more favorable as well as affordable rates and loan terms by opting for a 30 year fixed rate loan. Current program rates are under 6 percent.
Prospective home buyers are taking advantage of the new conforming loan limits and today's lower prices to purchase a home. Low down payment programs which require only 3 1/2 % are still available to qualified buyers. This particular combination of low rates and prices will not last forever. Qualified borrowers which possess a verifiable income level along with above average credit ratings will find available mortgage money which is priced well.
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