2018 Loan Limit Increase

2018 Loan Limit Increase

GTG Financial, Inc
GTG Financial, Inc
Published on January 5, 2018

2018 Loan Limit Increase

Loan limits for conventional, FHA & VA loans have increased across the country, state and county spectrums.

Verify my mortgage eligibility (Feb 3rd, 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 (Feb 3rd, 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 (Feb 3rd, 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 (Feb 3rd, 2023)
GTG Financial, Inc
GTG Financial, Inc
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(707) 546-0440

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