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Making Sense of Conforming versus Non-Conforming California Home Loans, 2014

Posted October 4th, 2011 in Mortgage Loan Insights

December 9, 2013

The Federal loan limits that define “conforming” and “non-conforming” loans (by county) can be  confusing for homeowners, but these limits are relevant and important for consumers to know, since the distinction between what constitutes a “conforming” loan versus a “non-conforming” is what ultimately distinguishes a “conventional” loan from a “SUPER JUMBO” loan.

A “conventional” loan is defined generally as belonging to Fannie Mae or Freddie Mac in compliance with specific lending guidelines. FHA, VA, USDA, and other government loan  programs are NOT considered conventional loans. The high-cost limits apply to conventional loans.

In 2008, Congress extended “temporary”, higher loan allowances for “high cost” areas. In California, those high-cost areas accounted for 38 of our 54 counties. These temporary increases in what was otherwise known as the “permanent high-balance” loan limits for high-cost areas were slated to expire at the end of 2008, but were extended due to the ailing housing industry through September 30th, 2011 and continue into 2014 unchanged.

This current Congress decided recently to maintain the status quo for conventional loan limits in 2014, but these limits may see changes sooner rather than later.

FHA loan limits in High-Cost Counties have been reduced in 2014 to match the current conforming loan limit of $625,500, down from the 2013 limit of $729,750.

(Hint: Leveraged super-jumbo financing with LESS money down is my specialty — see my blog post “lower down payment on super jumbo” for more details.)

You can check the newly-revised maximum loan limit for your county by going to HUD’s website and entering the County, State, and Fannie Mae loan limits in the appropriate categories online, then click Send.

Don’t despair — if you’re in the market for a home with a price that places your loan into the non-conforming / super jumbo arena, I offer super jumbo loan programs with as little as 10% down.

Our super jumbo financing products are limited to California property only. We do NOT finance residential homes outside of California.

Call me toll-free today: 1-800-644-8829 or Inquire Online about your super jumbo financing needs.

Call now for a free no-obligation home loan consultation:
Valencia / Santa Clarita / Los Angeles: (661) 255-9824 | Toll-Free: 1 (800) 644-8829   Inquire Online  
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