The high balance conforming loan limits have been announced per county, and the increases are substantial. The higher loan limits are now live for high-cost counties in the states of California, Idaho, Maryland, New Jersey, Pennsylvania, Virginia, and Washington. In all other counties where the base conforming loan limit was at $548,250 for one unit, the limits are now allotted up to $647,200!
The new loan limits for our most pressing California counties are as follows:
Orange County $937,500
Riverside County $647,200
Los Angeles County $937,500
San Diego County $879,750
San Francisco County $937,500
Santa Clara County $937,500
What exactly does this change?
What used to be a Jumbo loan is now being considered a Conventional loan with all of the perks included, such as ease of loan . It is now possible to get these loan limits without worrying about qualifying with Jumbo guidelines, which have more restrictive qualifying prerequisites.
Also, these loan amounts are valid for a primary residence for as little as 10% down and up to 90% loan-to-value (LTV) ratio allowed! Typically, any loan with over 80% LTV previously required private mortgage insurance (PMI) which can add tens of thousands of dollars over the life of the loan.
Any loan amounts reaching above this new loan limit will be considered Jumbo, and as a result will have stricter qualifying requirements.
Curious about how much home you can afford with these new loan limits? Please give us a call at (760) 930-0569 and one of our mortgage advisors will be happy to assist.