2018 Loan Limit Increase Loan limits for conventional, FHA & VA loans have increased across the country, state and county spectrums. Verify my mortgage eligibility (Jun 2nd, 2023) Federally, the base loan limit has been increased from $424,100 to $453,100 Statewide, all ‘high cost’ areas such as Marin, San Francisco, Los Angeles etc have increased from $636,150 to $679,650 Locally here on the Sonoma County level, our max loan limit for a NON-Jumbo loan has increased from $595,700 to $648,600. Verify my mortgage eligibility (Jun 2nd, 2023) Let me do some explaining: Current Problem: Let’s say you have a borrower that wants to look at up to a $700,000 property, and of course qualifies… no delusions of grandeur, please! LOL. This is the new norm, we all know this.Your buyer only has roughly $50,000 in down payment. Verify my mortgage eligibility (Jun 2nd, 2023) Again, pretty normal. As of right now, here is where they stand – Borrowers have 5%+ in down payment and can qualify for a $700k+ purchase… if they had more assets. Must stay at the $595,700 county limit. Would need $104,300 for a down payment on a $700k purchase to stay within Fannie Mae / Freddie Mac loan limits of $595,700. Jumbo Financing is usually out of the question because of reserve requirements in this scenario. Borrowers are now pigeonholed into looking for a $645k -$650k property so that they can get their $595,700 county loan limit financing. All because of the amount of cash to use and current loan limits. Increased Loan Limit: Same borrower with the new loan limits going into effect* The borrower can now get a $648,600* loan within Sonoma County. Put down $51,400 in down payment on a $700,000 purchase to reach the new loan limit. Purchasing power was just increased by $50,000!!! There are of course other options STILL available such as 80/10/10’s, Piggy Back loans etc. But this is a nice CLEAN increase that will really help our buyer in this increasingly competitive market. Show me today's rates (Jun 2nd, 2023) GTG Financial, Inc Click to Call or Text: (707) 546-0440 This entry has 0 replies Comments are closed.