Clearwater Florida Home Buyers get good Tampa Mortgage News

Clearwater Florida – After the recent Government rollout…..Everything old is new again.

Conforming Tampa mortgage loans are limited by loan size, based on “typical” housing costs for each area around the country. The current conforming limit on a single-unit property is $417,000.

Anything over that is considered a “Jumbo Loan” and comes at an added expense which explains by most recent beach sales are under $500,00 or well over $1,000,000. Recently when helping a family purchase a beach condo we realized how the lack of mortgage options for our high priced Clearwater beach properties was effecting the buyers ability and desire to purchase a Clearwater Beach condo they wanted.

Historically, Clearwater Beach property sales increased along with prices because of the ability to get loans for these luxury oceanfront properties- while no one wants the irrational exhuberance we saw in 2005 and 2006 we also need reasonable credit options today for high priced properties or that fact alone will lead to the continued decline in their value. Limiting credit limits the number of possible buyers.

If there are  fewer people who can buy these condos it means Clearwater Beach properties will remain stuck in a strong buyers market with continued downward pressure on property sales prices. We are even finding some local banks asking for 30-50% down on condominium purchases so hopefully we’ll see a loosening of the local lending policies for our luxury beachfront condos in Clearwater

Related: Fannie Mae puts extra hurdles on Clearwater Condo Mortgage options 

Last year in 2008, as part of the Economic Stimulus Act of 2008, Congress authorized conforming loan limits increases in “high-cost” areas around the country. In Los Angeles County, for example, a mortgage could be as large as $729,750 and still be considered “conforming”. The bad news for us was that it went county by county and overall Pinellas County did not qualify for the higher amount even though we have 26+ miles of Pinellas beachfront properties.

Those temporary increases rolled back on real estate effective January 1, 2009, to a maximum of $625,500.

Will new Law raise financing limit on Clearwater Beach Condos?

However, as part of the American Recovery and Reinvestment Act of 2009 signed into law this week, conforming home loan limits in high-cost areas have been returned to their higher levels of 2008.

I heard a rumor that the new law will adjust down to the neighborhood level, however, when I called several top Tampa mortgage professionals they said they didn’t have all the details yet. I will keep you posted and keep my fingers crossed.

We are hopeful that this new law will give buyers looking purchase condos in Clearwater Beach Florida this year more favorable loan options on amounts over the standard $417,000.

You can see the text on the bottom of page 111 of 407.

Changes to conforming loan limits impact everyone with a stake in Clearwater Florida real estate, even if their neighborhoods are not considered “high-cost”. This is because conforming mortgages offer the widest selection of home loan products, and often at the lowest rates. The widespread availability of conforming mortgages helps to support home sales nationwide as well as providing ample refinancing options for people that need it.

Lenders have yet to pick up the change, but are expected to shortly. Once they do, more homeowners will be eligible for cheap home financing.

To lookup neighborhood’s conforming loan limits, visit the HUD Web site. Or, if you have specific questions related to your Clearwater home or an upcoming Clearwater beach real estate purchase, contact me directly anytime.

Thinking of Buying or Selling Property in Clearwater Beach Florida – We can help

If you have been thinking about buying or selling a waterfont or beach condo in the Clearwater  St Pete Tampa Bay area…

Contact us for a FREE quote and to find out your Tampa Mortgage options and you can search all Tampa St Petersburg and Clearwater condos for sale right now..

Call Us Today at (727) 710-8036 to hear more about how we can help you!

Copyright © 2009 Jack and Cyndee Haydon, Clearwater Beach REALTORS and your Clearwater Beach Real Estate Consultants specializing in Clearwater Beach Florida and may not be copied, reproduced, distributed, transmitted, displayed or published.

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5 Comments

  1. I think that they should increase the standard in order to open up more options for people wanting to buy property in that range while still effectively increasing supply for buyers looking to purchase the more expensive condos.

  2. It was very interesting to read this article. I am a junior real estate agent, I am just starting my hard way in this business. It is said that mortgage loans in some strategic areas are so limited. I hope that financing limit on Clearwater Beach Condos will raise and I will keep my fingers crossed too! I wish you good luck in your hard business and will be silently learning from professionals like you.

  3. I must say that overall I am really impressed with this blog.It is easy to see that you are impassioned about your writing. I wish I had got your ability to write. I look forward to more updates and will be returning.

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