Mortgage Insights Blog
Home Loans · Hard Money Loans · Commercial Financing · Investor Loans

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  
Equal Housing Lender
This website is owned by John J. Harambasic (MLO, NMLS ID #281276) at Augusta Financial Inc. This is not the corporate website of Augusta Financial Inc. Augusta Financial Inc is Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, #4131305 and NMLS ID #241911, and provides residential and commercial mortgage loans for California real estate. Non-residential, commercial income property loans available in Western U.S. | See our Privacy Policy | Disclosures | Where We Loan
© 2002-2020 John J. Harambasic. All Rights Reserved. DianeV Web Design Studio
Disclaimer: The advice and opinions expressed herein do not constitute legal advice and are intended for general informational purposes only based on the working experience of the author only. The author is not a licensed attorney. The opinions contained herein are made exclusively by the author and not those of Augusta Financial Inc, it's ownership, management, or other employees. No guarantees as to the validity or legal aspects of the information contained herein are made, express or implied. Accuracy of this information is subject to change per market conditions or the author's experience in the industry. No guarantees are expressed or implied as to the viability of real estate as an investment. Personal credit issues are subjective. Real estate, finance, investment, and landlord-tenant laws and regulations vary state-by-state. You should consult with a licensed real estate attorney in your area for all matters pertaining to the legal aspects of selling, purchasing, financing, investing in, or rental of real estate whenever legal and/or financial implications are (or should be) a consideration. Page copy protected against web site content infringement by Copyscape
37 queries. 0.107 seconds.