Good news! Seattle's home loan limit raised to $567,500 (sales, real estate market)

[70Ford]

Home loan limit raised to $567,500


Now is the time to go buy that 1/2 million dollar home! Get out and buy! buy! buy! My wife told me she went looking the other day, and they were advertising some in our area, "From the 9's."

You ever notice they don't say $900,000 dollars? Or "Almost a million?" It's from the 8's...from the 9's...... I wonder if it is ever gonna be "From the 1's".

Probably.

You know, they didn't raise these freaking limits until the economy hit the crapper. I wonder if this is some strange way to get us to spend money that we wouldn't otherwise be spending. There's something weirdly sneaky about that. I just can't put my finger on it.

[jwb123]

What type of government backed loan? Like FHA??

[VeronikaW]

I saw something about this, but I don't understand it at all. What does that mean the loan limit has been raised? And what's an FHA??

Thanks!

[haggardhouseelf]

I don't see them raising this (supposed) limit as a positive. It only encourages people to keep buying more home than they can really afford, and in this instance it's people who don't have the money to begin with. LOAN is the key word here. Think about it...

We should be teaching ourselves (and setting the example for future generations...) to not spend more than 25-30% of our after taxes income on our housing (including utilities, maintenance, yard care, etc.) yet instead we keep having outside influences like this pushing us to spend spend spend.

This is ridiculous. When will the madness stop? Oh, I can answer that - it prolly won't!

Be smart everybody! Do what's best for your personal situation - not what fulfills some sort of glossy societal stereotype which will only make you poorer and more stressed-out - and somebody else much, much, richer.

Now is the time to be frugal scrooges, tucking money away... It is not a time (is it ever?) to spend more of what we don't have to begin with, all in the name of falling under the spell of deluded marketing madness.

I'm teaching my children to keep their hands - and their dollars - to themselves whenever possible, if not at all times.

[Ira500]

If you previously needed to borrow more than 417,000 dollars to buy a home, you'd have to get a "jumbo" loan, which required a larger down payment and a higher interest rate.
In many neighborhoods in Seattle, 417,000 dollars will get you a falling apart dump...so this should make it easier for some people to buy houses...and there's lots of them on the market right now. Sales are down, and inventory is up, so what's the next logical step? Of course, lower prices! When news reporters ask about the future of the Real Estate market, they often ask a real estate broker, as if they're going to get an unbiased, honest opinion, and they always say " Now is a great time to buy."
Well, it is from the perspective of having a lot to choose from, but it's not from the perspective of homes still being way too expensive and dropping in price.
I'm such an "anti" real estate agent real estate agent. Over the very long haul, it probably makes sense to own a home, and right now there are a few bargains to be had, but for the most part: keep renting and put away money. there will be a great time to buy, it's just not now, and just because more money is available at a lower interest rate to buy that insanely overpriced house doesn't mean you should.

[VeronikaW]

Originally Posted by Ira500

If you previously needed to borrow more than 417,000 dollars to buy a home, you'd have to get a "jumbo" loan, which required a larger down payment and a higher interest rate.
In many neighborhoods in Seattle, 417,000 dollars will get you a falling apart dump...so this should make it easier for some people to buy houses...and there's lots of them on the market right now. Sales are down, and inventory is up, so what's the next logical step? Of course, lower prices! When news reporters ask about the future of the Real Estate market, they often ask a real estate broker, as if they're going to get an unbiased, honest opinion, and they always say " Now is a great time to buy."
Well, it is from the perspective of having a lot to choose from, but it's not from the perspective of homes still being way too expensive and dropping in price.
I'm such an "anti" real estate agent real estate agent. Over the very long haul, it probably makes sense to own a home, and right now there are a few bargains to be had, but for the most part: keep renting and put away money. there will be a great time to buy, it's just not now, and just because more money is available at a lower interest rate to buy that insanely overpriced house doesn't mean you should.

Thank you for explaining that!!!