The government service enterprises,
Fannie Mae, and Freddie Mac are raising loan limits on January 1, 2018 in 98%
of counties nationwide because of the rapid growth in housing prices.
In high-cost areas of California typically near the coast,
the county loan limits can be as much as $679,650, up from $636,150.
What this means for home buyers?
The higher 2018 loan limits may
allow low- and moderate-income home buyers a bigger selection of homes to
choose from when shopping for a home.
For the market areas, we are
specifically serving borrowers in, here are your new one-unit confirming loan
limits for 2018:
Greater Los Angeles
Los Angeles County: $679,650
Orange County: $679,750
Riverside County: $453,100
San Bernardino County: $453,100
Ventura County: $672,250
Santa Barbara County: $625,500
San Diego County: $649,750
Among the benefits these new limits
are significant is that it place some borrowers into a conforming loan versus a
jumbo loan which means they may be able to come in with the 3% minimum on a
home purchase up to $467,000.
Due to the L.A. and Orange County
conforming limit increases, homebuyers can put down 5-percent and avoid the
need for jumbo financing. Their maximum purchase could go up to $700,000 or
$704,000 using an FHA loan that requires a 3-percent down payment. In San
Diego, it enables home buyers to purchase a home up to $673,300.
