Today, I have with me special guest Todd Pianin of RPM Mortgage, the man of all things mortgage. He’ll be discussing the rise in loan limits this year and how that can help you win in the San Diego real estate market.
According to Todd, the situation incredible—this is the biggest rise in loan limits that we’ve seen in a couple years. Conforming loan limits are up to $453,100 for single-family residents in San Diego. On high balance loan limits, we went up to $679,650.
This is unbelievable because it means that when you’re looking at something in the $800,000 range and putting down 20%, you’ve got a great opportunity to get conforming interest rates. In the past, you’d have to go through the jumbo loan process.
It also pertains to multi-units. Todd sees a lot of clients who own triplexes and were limited on how much cash they could pull out of those properties who can now pull cash out at much higher numbers than they could last year. Now they’re able to use that to buy more properties or pay down their mortgage on their personal residences. They can take advantage of both sides of the equation.
On our end, with the mid-range, detached home prices in the mid-$700,000 price point in San Diego, being able to have this high loan balance lowers the amount that people are required to put down on a higher-priced home. People are able to get the home they want in the time they want at the rate that makes sense for them.
Another cool aspect, according to Todd, is that these new limits also pertain to VA and FHA loans. It means that you have a 3.5%-down FHA program where you can basically buy a mid-range, detached home and get an incredible interest rate. With the VA loan, you can put 0% down. This could actually stimulate the marketrather than hurt it, as people are concerned about with the recent tax reform. It will help both first-time and experienced homebuyers.
We are really excited to be able to help families in 2018. If he can be of help to you, Todd can be reached at (858) 775-8958 or tpianin@rpm-mtg.com.
Todd Pianin, Regional Manager NMLS# 304014
LendUS, LLC dba RPM Mortgage NMLS #1938 - Licensed by the Department of Business Oversight under the CA Residential Mortgage Lending Act. Equal Housing Opportunity.
If you have any questions or need any tips and tricks on how to win in the San Diego real estate market, feel free to reach out to me. I’d love to help you out this year.
