The White House recently released recommendations to phase out Fannie Mae and Freddie Mac. The elimination of goverment involvement in the mortgage industry will more than likely increase borrowing costs and in this REALTORs’ humble slow the Real Estate and economic Recovery.

It has been recommended that an alternative to eliminating both Fannie Mae and Freddie Mac government-sponsored enterprises (GSEs) that instead they should be converted into non-profit corporations.  This would ensure government’s role in the real estate finance system, while eliminating the conflict created by the GSE’s, which allows for a private profit and public loss structure.  With a guarantee by the government, these entities would continue to be able to offer low interest rate loans onto home buyers, which is good news for most of my clients.

The White House’s proposal also recommends allowing the maximum loan limit to drop back to $625,500 in high cost areas. This provision will be another hurdle in California’s housing recovery. This will make it diffiucult to finance homes in high cost areas including La Jolla, Del Mar, Scripps Ranch, Rancho Santa Fe, Carmel Valley et al. These are areas where the average price for a single family home is above the the proposed conforming limit.

For more information on purchasing and financing homes in high costa areas. Feel free to contact me @ Leonardo.Gonzalez@century21.com or call me directly for a faster response. 619-709-2042

This is the link to ABC Real Estate. This site will allow you to search through agents in your area.

http://bit.ly/eLT8U9

Please contact me if you need an experienced and proven REALTOR in the San Diego area leonardo.Gonzalez@century21.com or call me for a faster response 619-709-2042.