Each year the big lending institutions that regulate “Conforming Loan Limits” determine if the current guidelines are appropriate. This is measured from county to county and typically reflects the median cost of housing in each area. These loan limits are important as they cap the amount on can borrower for specific types of loans. In the past, these limits have been different depending on the type of loan you wanted – FHA, VA, or Conforming. However, more recently they different groups have simplified things by aligning their limits to be the same.
There have been many years when nothing changes, and some years some counties change while other remain the same. So as a Mortgage Planner, each year we anxiously await the announcements to find out what we have to work with. We just found out that some counties will get increased loan limits for 2016 – but which ones?
This year only 40 counties nationally received increases in their Conforming Loan Limits. Most relevant for us here at the GHG, only 4 counties in CA received increases. They are
- *San Diego
These new loan limits will help buyers in that area take advantage of the benefits of conforming loans, when in some cases they couldn’t otherwise. If you’d like to find out what the new limits are, or are interested in how this can be important to you, please feel free to email me by clicking here. I’d be happy to share the new limits with you and see if it helps you save money.