My New Blog

It is no surprise that it has taken a crisis for Congress to act on the raising of the loan limits that our government banking system has kept at the Single family loan amount of $417,000 for many years. We all recognize that the average Sales Price and down payment makes it very difficult for the average person to obtain a great loan and rate to enjoy being a homeowner with all of the equity and tax savings that come with the pride of ownership as well. It will take a bit of time to get our politicians to agree on what is an acceptable loan size and how long it will be in effect. My opinion is to raise it to $650,000 for an indefinite time period and also raise the limits for the 2-4 unit loan limits to make it sensible for all borrowers & types of properties. Another huge factor is qualifying our self -employed borrowers who most show 2 years of tax returns to get their income to qualify. I would suggest that the expenses of being self-employed be included and not deducted from their income. It gets a bit complicated, but there needs to be some sort of reform in this type of borrower. Feel free to contact me with your opinions as well, because after all it is you the consumer who will determine the future of our economy.

Regards

Bob Gerson-Loan Officer & Financial Strategist

NAMB/CAMB