Major Increase in Monterey; San Diego; Sonoma; San Luis Obispo; Ventura and Yolo Counties as well as King; Pierce and Snohomish Counties in Washington
Single family conforming loan limits increased to $424,100 across the nation and to $636,150 in certain high-cost areas. Several counties that previously were in between the base and high-cost limits saw significant increases based on rising property values in Signet Mortgage service areas. Monterey; San Diego; Sonoma; San Luis Obispo; Ventura and Yolo Counties in California as well as King; Pierce and Snohomish Counties in Washington will now have access to conforming loan limits reflecting the current market values.
The Federal Housing Finance Agency (FHFA) announced these changes in a press release today. The new conforming limits will be effective for loans closed after January 1, 2017.
The new limits are helpful as conforming rates generally are lower than jumbo rates and underwriting more consistent and flexible so a few more transactions will get done! A purchase in the Bay Area up to $795,000 at 80% loan to value can be done with a conforming loan …
Particularly relevant with this news announcement is the average U.S. home prices have edged slightly above pre-decline levels from 2007. Data published in the third quarter Housing Price Index (HPI), reveal that housing prices are approximately 1.7 percent above the value for third quarter 2007.
Here is a link to the loan limits by county for Signet Mortgage service area (CA, WA, OR, ID, UT) and for the entire country. Included on the right of the chart are the changes from 2016. The source document from FHFA is here.
Certain high-cost areas have the higher limits at 150% of the base at $636,150 (150 % of $424,100). But many counties, such as Monterey, Orange, Sacramento, San Diego, San Luis Obispo, Summit (UT), Jefferson (WA), Pierce (WA) and Snohomish (WA) saw significant bumps to its loan limits.
Here are highlights of loan amounts and details for single family and up to 4 units and changes for those counties.
The changes do not impact FHA forward or reverse mortgages or VA loans for the moment. Those announcements should be forthcoming in the next couple of weeks. With the 2008 economic stimulus plan FHA increased loan limits to $625,500 for reverse mortgages for one year and has extended this limit one year at a time since. The $625k is due to expire this Dec 31. We should hear soon if it has been extended again or changed up or down.
As a mortgage professional in business for over thirty years, I am here to consult with you and answer any questions you have about the strategic use of your mortgage. Let’s talk about your goals and perhaps ways that you can take advantage of these changes. Call or email me – I am happy to help!
Tags: Conforming Loan Limits, current market values, Economic Stimulus Plan, Fannie Mae, FHA, FHFA, Forward Mortgage, Freddie Mac, HPI, King County, Loan limits, Money Tips, Monterey Housing, Pierce and Snohomish Counties Housing, Real Estate, Reverse Mortgage, San Diego Housing, San Luis Obispo Housing, Signet Mortgage, Sonoma Housing, U.S. Home Prices, Ventura Housing, Washington Housing, Yolo Counties Housing
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