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  • Comment Detail

  • Date: 12/16/13
    First Name: Tom
    Last Name: Monroe
    Organization: Solera Mortgage
    City: N/A
    State: N/A
    Attachment: N/A
    Number: 2013-N-18

  • Comment

    I disagree with this move.

    The economy is starting to get a foot hold in the right direction and the reduction would only hurt by limiting home ownership.

    As the housing market recovers, the values increase and become a valid investment for young people. By reducing the loan limits it will force them to put more funds down, thus causing them to wait on any home purchases. This will stop the positive moves that we have seen in the housing market.

    Also with the lower limit, it will cause the Veterans wishing to utilize their VA Entitlement, to put more money down and or reduce the home purchase amount that they can qualify for. The VA Bonus Entitlement will be reduced to $64,000, so the max 100% loan for a veteran will be $400,000.

    Thus with the home purchases dropping off due to the reduction of loan limits, we will see the economy take a step back. Home ownership drives other areas, such as home owners fixing/repairing their home spend assets at improvements store, showing a pride of ownership.