San Diego High Balance Conforming Loan Limits Increasing for 2016
The Federal Housing Finance Agency (FHFA), which sets the San Diego loan limits for loans purchased by Fannie Mae (FNMA) and Freddie Mac (FHLMC), announce that the San Diego High Balance Conforming Loan Limit is increasing from $562,350 to $580,750 for loans closed on or after January 1, 2016. This is an increase in the San Diego High Balance Conforming loan limit of $18,400. 
The loan limits are established under the terms of the Housing and Economic Recovery Act of 2008 (HERA).
Out of the 3,143 counties and county equivalents in the United States, only 235 are considered high cost counties.
There a total of 39 counties affected nationwide by the 2016 increase and of those 39 counties affected, there are four in California:
- Monterey County increasing from $502,550 to $529,000
- Napa County increasing from $615,250 to $625,500
- Sonoma County increasing from $520,950 to $554,300
- San Diego County increasing from $562,350 to $580,750
Fannie Mae refers to loan amounts greater than $417,000 up to the new limit as High Balance Conforming Loans. Freddie Mac refers to these same loan amounts as Super Conforming Loans.
For many counties, the Conforming loan limit is still $417,000 and everything above that number is considered a Jumbo loan which can carry higher interest rates and more restrictive lending guidelines, namely lower maximum debt to income ratios. With the new increase, a Jumbo loan will be any loan amount exceeding $580,750 in San Diego County.
Both FHA and VA announced that they will follow the recent Fannie/Freddie increase to $580,750 for San Diego County.
Looking to purchase or refinance a home in San Diego County or any other part of California? Contact me today by calling 760-500-1919 and let's see what we can do. Know before you go!
