New Conventional Conforming Loan Limit Increase 

The new conventional Conforming loan limits have been increased to $715,000! Although they haven’t been officially released, we at Bluefire Mortgage Group are honoring these new loan limits effective immediately starting today.

Why does this matter?
This is a significant boost from the current limit of $647,200 and this increase in loan limits will dramatically increase what borrowers can qualify for throughout the country.

This will specifically benefit many of the lower cost counties – such as Riverside, Sacramento, and San Bernardino – as borrowers will be able to apply for Conforming mortgages instead of Jumbo mortgage loans. Jumbo loans are typically harder to qualify for, require higher down payments, and have stringent underwriting criteria.

What exactly does this mean for borrowers?
Let’s assume a borrower wanted to purchase a home for $700,000 in a lower cost county. Before this new loan limit increases, the borrower would have to put at least 10% down in order to keep the loan amount under the Conventional loan limit of $647,200.

If they borrowed more than that, the borrower would have to go with a high balance loan (depending on the county they are located in) or a Jumbo loan, which generally equates to a higher rate and higher fees.

However, with a loan limit increase of $67,800, borrowers will now be able to put the bare minimum down payment of 3.00% for the same property and avoid the need for a Jumbo loan product.

Conventional high value amounts will vary from county to county and we can provide better guidance for this as more information develops. In the meantime, we are now accepting conventional Conforming loan amounts of up to $715,000.

Give us a call at (760) 930-0569 for more information or with any questions you may have regarding these changes.