Loan Advice from Dana

Conforming loan limits in California are set to decrease on October 1st.  How does this affect you?

More than 30,000 California families could face higher down payments, higher mortgage rates, and stricter loan qualification requirements.  In Santa Clara County the conforming loan limit for FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises will decrease to $625,500 from the current $729,750.  As a result of this change home buyers in California may have to turn to non-conforming or jumbo loans, which typically carry higher interest rates and require a higher down payment than conforming loans.

The reduced loan limit ultimately restricts thousands of potential home buyers in California and slows down the housing market recovery.