Industry News

Revised secondary real estate loan limit falls short

California Realtors say ceiling should better reflect state housing costs

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More than 12,960 families in California will be able to benefit from the increase in the Fannie Mae and Freddie Mac single-family mortgage loan limit in 2005, according to the California Association of Realtors. The secondary mortgage companies' federal regulator increased the loan limit from $333,700 to $359,650 beginning next year. But the California Realtors say the increase still falls short of what California home buyers need. "Once again, although the new conforming loan limits will help some home buyers qualify for a lower-cost loan, they do not go far enough to benefit most home buyers in California," C.A.R. President Jim Hamilton said. "The median price of a home in California is 28 percent higher than the new loan limits announced today," he said. "Conforming loan limits need to more accurately reflect the cost of housing in California." The current median home price in California is $460,370, an increase of 21.4 percent compared to a year ago and more than 28 percent h...