Loan Limits and Home Buying Part 1
/Dan Hubrich of Mountain View Mortgage is back and this month he’s talking about loan limits for mortgages.
This month I’d like to talk about county loan limits. When borrowers get pre-approved for a mortgage it’s very important to let your loan officer know what county or counties you plan on buying in. Each county has a maximum FHA or Conforming (Conventional) loan limit. So even if you are pre-approved for a higher amount, you may not be able to go that high if the county loan limit is lower. The good news is that FHA and Fannie Mae/Freddie Mac have been continually increasing the loan limits around the country each year to compensate for rising prices. Most conventional limits are at least $510,400 now and Salt Lake County is $600,300. Contact me for a full list of other counties. Also keep in mind that we’re talking about the loan amount not the purchase price. The purchase price can be higher than these limits but you’d need to come to closing with the difference in down payment. What if your loan is higher than the county limits? Then it becomes a jumbo/non-conforming loan and the requirements to qualify will change. I’ll talk about that next month.