New GSE Loan Limit for Seattle: $567,500

[deejayoh]

just released

http://www.ofheo.gov/media/hpi/AREA_LIST.pdf

[explorer]

As someone who watches FHA limits, the 3% down was always affordable. Quick, on the napkin calculations means someone who goes to the 567K limit would pay an average of $3600/month for a 7% 30 yr fixed. That goes for refis too.

At the median income, it's still way out of my league, and this seems more like it's for a bailout for those subprime and HELOC people. Does anyone think this will be used to justify keeping the prices high in King County, even when there are no takers?

Maybe when 2bd top floor, south or west Facing North End Condos with at least 1000 SQ ft, a deck, and secured parking become available for under 200K, then I might have something to work with under FHA. One can dream.

[Rhonda P]

Explorer, where are you coming up with 7%? FHA is in the low-mid 6s. I'm guessing (hoping) that there will not be an add to rate for the FHA new loan limits. Typically lenders in the past (on the wholesale side) do not have add to rate based on loan amounts. Conventional loans are often bracketed with various adds to rate...so I fully expect an add for loans over $417k conventional.

[sniglet]

[explorer]

I am indeed making the assumption the rate will be higher, since they will be likely be turned into CDO's, and in an attempt to make first time borrowers pay for the losses (just me being cynical).

All of the rates I did a quick search for have not caught up to the new limits/conditions yet.

[melonleftcoast]

Well, at least prices have already declined in the Boston area (where we'll be moving to this summer, not Seattle afterall). Therefore, the new "TCL" limits are less in Boston.

According to an article in the Boston Globe, Boston's limits are: $523,750.

Wow. From what our friends that live in Seattle say, pay for most industries is less in Seattle than it is in Boston.

Why are people still buying houses in Seattle at such inflated prices? We're still planning on waiting 6mo to a year to buy in Boston.

[rose-colored-coolaid]