December 14, 2013

Priced Out For-EVEH AGAIN!

Don’t look now, but the FHA just swiftly kicked California in the housing numb…ers.

Housing Agency Will Reduce Mortgage-Loan Limits

FHA will drop the maximum mortgage loan it will guarantee next month

131213-mortgageBy NICK TIMIRAOS, Wall Street Journal, Dec. 6, 2013 5:17 p.m. ET

The Federal Housing Administration will drop the maximum size of home-mortgage loans that it will guarantee beginning next month in nearly 650 counties, the agency said Friday.

The maximum for single-family homes in certain "high-cost" housing markets including Los Angeles, San Francisco and New York will fall to $625,500, from the current level of $729,750.

The FHA doesn’t make mortgages but instead insures lenders against defaults on loans that meet its standards. It allows borrowers to make down payments of just 3.5% and has played an outsized role backstopping mortgages in the aftermath of the housing bust.

You just know those New York and DC types are behind this, trying to harsh our mellow, and kill our housing price leadership.

131213-fhaWell, we just have one thing to say to that: PTHTHBBBT.  That’s not going to hurt us here where the Engines of Creativity run 24/7/365.25.  No FHA mortgage backstop means everyone has to put 20% down on their above-$625,000 loans.  But so what?  Everyone here has a brazillion stock options and can buy houses for cash found under their Tesla Model S seat cushions! You know who that’s going to hurt, instead?

Los Angeles.  Moohahahahaha!  Look at the reaction by the California Association of Realtards, who are terrified of county median values resetting downward.  Of course, in the Real Bay Area, prices continue to only go upwards.

And as this is the first Weekend Open Thread we’ve provided in a while, feel free to comment on government housing issues, why SoCal’s housing market sucks compared to ours, or anything on your mind.

Comments (7) -- Posted by: madhaus @ 7:03 am

7 Responses to “Priced Out For-EVEH AGAIN!”

  1. Real Estater Says:

    It doesn’t matter. We are Number One!

  2. Real Estater Says:

    Why Palo Alto is a great place to live

  3. Real Estater Says:

    More evidence we are Number One!

  4. Jb Says:

    Or, as Belt the sloth would say “da da daaaaaaa!”

  5. nomadic Says:

    4. Fantastic restaurants! People living in Palo Alto, or just visiting can enjoy food from all over the world and at any price.

    5. Living in Palo Alto does not mean living in a boring suburb.

    LOL, people who live in SF make fun of Palo Alto because there aren’t any good restaurants and it has no “character.”

  6. sprezzatura Says:

    Yikes! There goes our refi…..

  7. beans Says:

    Sorry, but Palo Alto is sort of boring. I used to work in and around there and as another commentator said the restaurant scene is lacking as well.

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