Don’t look now, but the FHA just swiftly kicked California in the housing numb…ers.
FHA will drop the maximum mortgage loan it will guarantee next month
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.
Well, 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.