Proposed Bill to Lower FHA Loan Limits Could Be Harmful to Bay Area Real Estate

Posted On: Monday, May 23, 2011 - 3:25pm | Posted By: Rob Rogers

http://www.inman.com/headlines/2011/05/23
There is a Bill proposed by the Republicans to seriously limit the loan limits on FHA financing as well as increase the minimum down payment to 5% from 3.5%.  There is already a scheduled reduction in loan limits from $729,750 to $625,000 in October, but this bill would seriously hinder FHA's effective use in San Francisco.  Over the last 3 years, when the loan limit was finally increased from $417,000, we have finally been able to take advantage of this wonderful opportunity for first time buyers.  In San Francisco, very few condominium projects were ever approved for FHA since the loan limit was well below the market value.  Now, we have worked hard to get many buildings approved as well as utilizing FHA loans to purchase single family homes in the Excelsior, Silver Terrace, Sunnyside, Ingleside and most of our more affordable neighborhoods.  With this proposed Bill, all that will come to a screeching halt.  I encourage all of you to write to your Congressman to vote against this proposed bill and to ask them to reinstate the loan limit of $729,750.

Rob Rogers

During his 20 years in the real estate industry, Rob has successfully negotiated nearly 1,000 transactions, earning top Producer status year after yea
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