Studio City CA Real Estate & Homes

Talk about obfuscation! That great stimulus package touted by GWB, may not be all that! At first glance, the loan limit has been raised from $417,000 to $729,750. Sounds great! BUT, and wait for it, although the FHA essentially underwrites or guarantees the loan, it appears that guarantee is an empty promise. We now have a new category loan, from $417,001 to $729,750 called either a Conforming Jumbo or a Jumbo Lite, depending on who you speak with. This new tier is being stepped on to the tune of higher rates and points. Not as low as conforming and not quite as high as Jumbo. See, the whole idea behind raising the limit was to allow first-time home buyers an easier path to finance. What’s going on is more GREED!! The whole idea of a conforming loan was that it had a great low rate BECAUSE it was guaranteed. This new range although guaranteed ( to protect the lenders) is somehow and quite mysteriously not guaranteed enough? To my mind it either is or isn’t! There shouldn’t be any middle ground! Or should I say muddled ground. I welcome your comments.