Mayor Sanders asks for special home loan consideration in San Diego

By: North County Times wire services | Friday, February 8, 2008 11:03 PM PST ∞

SAN DIEGO -- Mayor Jerry Sanders sent a letter to Senate Majority Leader Harry Reid, urging support for a temporary increase for conforming loan limits in high-cost housing areas like San Diego.

Increasing the conforming home loan limits from $417,000 to $729,750 is a component of President Bush's $160 billion economic stimulus package.

"In order to ensure that the economic stimulus package is successful, it is critical that we stabilize the housing market, especially in the major metropolitan areas that have been hit hardest by the recent real estate declines," Sanders wrote. "This is especially true for regions with exceptionally high-cost housing such as San Diego."

According to Sanders, foreclosures increased 353 percent in San Diego County over the past year.

Increasing the conforming home loan limit would allow homeowners to refinance their mortgages at lower interest rates through government-backed Fannie Mae and Freddie Mac, according to Sanders.

With the local median price of a home at $440,000, the "vast majority of our residents are unable to earn enough to afford a home but fall outside the eligibility for helpful federal programs," Sanders wrote.

"Because mortgages backed by Fannie Mae and Freddie Mac carry lower interest rates than other privately backed mortgages, such a change may allow many current homeowners to stave off foreclosure," he said.

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Pre-Registration Comments[-]Go to Top

no bailout wrote on Feb 6, 2008 8:33 PM:Let's see. We should put federal money at risk so that people who bought houses they can't afford can get bailed out. Why did we hear for years how we had to subsidize the building industry to make houses cheaper because people can't afford to buy, when the GOVERNMENT turns around and tries to prop up prices? So do we want overinflated prices or not? Let the market CORRECT.

The conforming loan limit is ridiculously low wrote on Feb 7, 2008 11:50 AM:You can't buy a house big enough for a family of 4 in most major urban areas without a jumbo. Forget temporary, the Jumbo limit needs to be brought into line with reality.

Jim wrote on Feb 7, 2008 7:03 PM:Mayor- Please send Congress a letter asking them to send me and everyone $10,000. Its only paper anyway right?

JSten wrote on Feb 7, 2008 7:11 PM:This is just wrong. I don't see how this helps to have the highest housing costs in t he country coupled with one of the lowest per capita incomes in the country.

Karl wrote on Feb 9, 2008 5:36 PM:To "lowest per capita incomes in the country" Jsten are sure about that?

American woman wrote on Feb 10, 2008 3:45 PM:...all but the illegal aliens, please! Oops! that would be the majority, wouldn't it? Hasn't Sanctuary San Diego ridded themselves of Sanders yet?

LUVUS wrote on Feb 10, 2008 3:52 PM:When you factor-in the "undocumented," folks, JSten's observation is probably pretty close! Hello???? Don't forget who makes up the population of Mayor Sander's extension of Mexico!

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