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Conforming Loan Limit, High Cost Areas

By Sam Giannakakis

Mortgage and Lending with Sam Giannakakis, Residential Mortgage Group

May 11, 2011 09:21 AM

I just wanted to share some information I read today from an article at HSH.com by Daniel Green

There is some bad news for people who are living in a high-cost area. As of May 2011 a $925,000 home purchase needs a 21% down payment to stay within conforming loan limits. After October 1^st that is going to increase to 33%. We are talking about an out of pocket difference of over $100,000 in order to get the best interest rates.

How do you know where high-cost living areas are? Go to this, interactive loan limit lookup page

So what is a conforming loan limit???

There are many mortgage types available to people however the conforming mortgage typically offers the lowest rates. A conforming mortgage conforms to the guidelines of Fannie Mae or Freddie Mac.

Thanks,

Sam Giannakakis

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Sam Giannakakis, Residential Mortgage Group - Wayzata, MN

Mortgage Officer 612.816.1511

if you want to read his full article go to http://library.hsh.com/articles/homeowners-repeat-buyers/expiration-of-conforming-loan-limits-is-going-to-cost-you.html

May 11, 2011 09:22 AM

Doug Bullwinkel

E Mortgage Capital, Inc. NMLS 1416824 - Roseville, CA

Mortgage Loan Officer NMLS #281609

The gifts just keep on coming in the mortgage industry. There's talk of higher down payments and credit score hits to FHA loans down the road as well. We still have several years of changes to take place so it's far from over.

May 11, 2011 10:08 AM

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Sam Giannakakis

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