Here’s why:  Pleasanton, San Ramon, Dublin, Livermore, Danville, Blackhawk, and Ruby Hill homes will be affected by this new legislation… These cities are in a high cost area. What does this mean to you? If you are thinking of selling or buying a home, now more than ever, is the time to act! This means more activity for entry-level homes in our area priced to a million dollars.

~Gail

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Question: Can you explain the new "economic stimulus" plan and what it will mean for homeowners?

Answer: The stimulus plan - which passed with huge bipartisan support in both the House and the Senate -- will distribute cash to more than 100 million households in an effort to stave off recession. Most importantly in terms of real estate, the stimulus bill will raise both conventional and FHA loans limits for the remainder of 2008.

The conventional loan limit will increase from $417,000 to $729,750. The top FHA loan limit within the continental U.S. will go from $362,790 to $729,750.

With higher loan limits, buyers will be able to obtain larger loans at lower cost. This should encourage sales in high-cost areas, plus it is hoped that inventories will be reduced and that borrowers with toxic loans will refinance with fixed-rate mortgages.