patrick.net

kronicade says

Checkout bankrate.com, a Jumbo loan (30yr fixed) has an interest rate of approx. 5.021%. Conversely, a non-jumbo is about 4.5%

FHA limit in LA covers up to $755,000 purchase price with 3.5% down.

This will fall to $647,000 later this year.

Current interest rates on a 3.5% down $728,000 loan is 4.25%.

AFAIK loans above the conforming limit require 20% down and come with a 5% interest rate.

The changes are far from negligible.

That's just not true. You can purchase using a conventional WITHOUT 20% down for jumbo or non-jumbo.

The interest rate will be higher than an FHA but we're already as low as interest rates can get.

Yes, this is negligible for an average buyer, even for California. If you're buying a 700k home you SHOULD have something to put down (more than 3.5%).

Ugh

kronicade says

The interest rate will be higher than an FHA but we're already as low as interest rates can get.

your own numbers show non-corforming has a 10% higher cost of money. That's a $25,000 hit at the $700,000 price point.

f you're buying a 700k home you SHOULD have something to put down (more than 3.5%)

tell it to the buyers, LOL. As for loan availability, I'm just going by google mortgage thing. They don't have any non-conforming loans without 20% down.

I know Union Bank also doesn't do their own loans without 20% down. Maybe others do. Dunno.

Troy says

This will fall to $647,000 later this year.

Yeah, and it can't fall fast enough. The conforming limit should be $417K again or lower. It's good to see that this is closer to reality in Monterey County now: "The biggest decline is set for Monterey County, California, where the cap will drop by $246,750 to $483,000."

This guy's quote is hilarious:

“I look at it like a deadline because right now I can get more house for my money,” said Jon Clyman, a 37-year-old real estate broker whose wife is a controller at a bank. “I’m seizing the opportunity while it exists.”

I'd love for this guy to explain how it's more house for his money.