Some of my wholesale lenders are being aggressive and funding conforming loans on a higher conforming maximum loan limit of $625,000 for a one-unit property, which is $75,000 above the current FHFA limit of $548,000.The new limits generally are released for Freddie and Fannie loans by the Federal Finance Housing Agency around mid to late November. Loans based on the higher loan amounts can’t be sold to the GSEs until January 1, 2022. The higher loan amount can help some borrowers compensate for rising home prices. In high-cost areas like Los Angeles, the High Balanced Conforming loan amount will have the biggest impact. The lenders are holding off on increasing the High Balanced amounts till the new rates are announced. They don’t want to take the risk of having to hold onto those loans on their portfolio if they can’t be sold to the GSEs in January.
Based on the national housing appreciation of 19.2% we should see the High Balance Conforming maximum loan amount increase to approximately $950,000. That will help borrowers with loans over the present High Balance amount of $822,375 go Conforming instead of Jumbo. Jumbo rates are generally higher, with tighter underwriting guidelines. The High Balance max loan amount is based by county. The $100,000+ increase in the loan amount will definitely help Los Angeles borrowers, as they get the maximum. Los Angeles County is slightly higher than Ventura County, and San Bernardino County is only at the basic loan amount. Location matters.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, SRES, SFR, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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