Extension of Higher Conforming Loan Limits a Boost?
“Buyers of homes in high-priced markets have some reason to cheer: the federal government recently extended through 2010 the maximum dollar amount for ‘conforming loans.’ This will probably mean better options for borrowers who might otherwise have had to take out ‘jumbo’ mortgages…Alan Rosenbaum, the chief executive of the Guardhill Financial Corporation in Manhattan, said…
“once prices drop, they’ll go up again”
With historic average inflation for decades to come. Hence flat in real terms.
***Bid half off peak comps***
Exhibit A:
“annual income of around 150k–to purchase a multifamily brownstone in Brooklyn with two rental apartments [as much as $954k with min 3% down], resulting in a much lower monthly nut than if we were trying to buy a 2 bedroom condo or coop”
Way over leveraged.
***Bid half off peak comps***
Thanks Lucy! I hope you find something (unless you already have…then, congrats!).
And yes, BHO…I know, I know! Sure prices will eventually come down…I assume if we’re not hit with a tidal wave or a complete and permanent collapse of the economic system, once prices drop, they’ll go up again.
Sure…yes, I now things “should” be hovering around their averages and right now we’re supposedly way off the averages…but I still feel comforted that whenever we sell our house, we can buy something in another part of the country and still have something left over. Unless things really, really change and NYC drops below other areas.
BrooklynGreene:
The limits are higher for 2 or 3 families. Just google conforming loan limits 2009 and then look for the high cost areas. Off the top of my head, 3 families are around 925k.
And contrary to what the peanut gallery here would have you believe, the extension of the limits allows for someone like my husband and me–with a combined annual income of around 150k–to purchase a multifamily brownstone in Brooklyn with two rental apartments, resulting in a much lower monthly nut than if we were trying to buy a 2 bedroom condo or coop.
Lucybb
“What is the raised ceiling for NYC 2- and 3-family houses…or are they not allowed the higher lending amounts?”
That latter. Kerboom!
“Anyway, what kind of boost do people think this is/will give to Brownstone Brooklyn’s current sale prices?”
Oh, a big one. But not in the direction that many want.
“Honestly, does someone out there have any real analysis?”
Half off is as real as it gets, baby! $729K brownstone cap. The belt average is about twice that.
***Bid half off peak comps***
What is the raised ceiling for NYC 2- and 3-family houses…or are they not allowed the higher lending amounts?
When I read the article this weekend, what jumped out at me was that the extension is for Manhattan and certain areas of Northern NJ…is this possibly true???
Anyway, what kind of boost do people think this is/will give to Brownstone Brooklyn’s current sale prices? Yes, I know that you can argue the politics and policy issues for hours…but what will this do for the market *now*? Will it “stabilize” things, for a long time, just for a couple of months, or will it make no difference, will it make “the pain” worse later?
Honestly, does someone out there have any real analysis?
BHO, Grand Pa, hannible. Thank you all for speaking up against socialism for the rich wall street bankers and the wall street/washington partnership.
Why is Bernanke ass raping the prudent and the savers with his 0% interest and giving their money to the reckless and over-leveraged?
Why is the government taking money away from hard working americans and giving it to wall street bankers through the TARP bailout program? These bankers are buying big houses again and hard working families are getting priced out of desirable neighborhoods.
I promised DIBS that I would keep to real estate discussions but could not help myself and had to jump in.
Bernanke you idiot raise inerest rates so we get all these wanna be homeowners back to California! Where is my free home? I get pennies for my money while you are lending my same money to these bums for free!
Bankrupt government provides subsidy for millionaires.
I guess besides providing socialism for the largest banks, Obama now will provide socialism for the highly paid employees of said banks. It is only fair, really.
If you can’t buy a million dollar house without government assistance, then maybe you should not be buying the house. Meanwhile homelessness in New York is at an all time high!!!