“Jumbo” Mortgage is Set to Expire in Oct, 2011

On Oct. 1, the maximum loan amount that Fannie Mae and Freddie Mac is set to decrease from $729,750 to $625,500. This might make mortgages more expensive or more difficult to get for buyers in high-cost areas, MSNBC.com reports.

For example, after Oct. 1, a borrower who seeks a government-backed mortgage for a $1-million property may have to come up with a $370,000 down payment instead of $270,000, Rob Chrisman, a mortgage banking consultant from San Rafael, Calif., told MSNBC.

Up until 2008, any loan more than $418,000 was considered a jumbo loan, but that later swelled to $625,500 and then was temporarily set at $729,750 (which expires at the end of September).

Once the current jumbo loan limit expires, lenders who want to make loans over $625,500 either will have to hold onto the mortgage themselves or find a private investor to purchase it.

Terramar 2011 Summer

2 new subdivision in - Pines & Willows

Here is what I heard -- there were 6 builders including CA west (builder for Andalucia and Monte Luz) bidding for the last lot in 4S and Pulte homes won the bid.

So there they are -- with 2 new subdivision coming up in 4S Ranch. I sure hope this is the last development in 4S. Monterey Ridge has over 1,000 students already! Still growing. Dr. Newman said at one site council meeting that he would really reluctant to build those trailer classrooms but eventually he gave up.

Pines: 2679 sf to 3262 sf. (I really liked their plan 3) High 600K to Low 700K.

Willows: 3353 sf to 3586 sf Low 700K to High 700K. Total homes 50. Tax & Mello Roos 1.9%.