The Federal Housing Finance Agency (FHFA) has just announced the 2017 county conforming loan limits will be raised from $417,000 to $424,100.
This is the first time the conforming loan limit has been raised since 2006 – an increase of $7,100. The reason for the increase is based on the FHFA’s analysis that the Home Price Index (HPI) value for the third quarter of 2016 was approximately 1.7% above average home values in 2007. Effectively, the conforming loan limit has increased by the same percentage.
2017 Conforming Loan Limit $424,100
3% Down-Payment: First-time home buyers looking to put down the minimum of 3% will now be able to purchase a home priced at $437,216 ($7,320 increase)
10% Down-Payment: First-time home buyers looking to put down 10% will now be able to purchase a home priced at $471,222 ($7,889 increase)
20% Down-Payment: First-time home buyers looking to put down 20% will now be able to purchase a home priced at $530,125 ($8,875 increase)
2017 Conventional High Balance Loan Limit $612,950
The San Diego County High Balance loan limit is also set to increase in 2017 from $580,750 to $612,950.
5% Down-Payment: Home buyers looking to put down the minimum of 5% will now be able to purchase a home priced at $645,210 ($33,895 increase)
10% Down-Payment: Home buyers looking to put down 10% will now be able to purchase a home priced at $681,055 ($35,778 increase)
20% Down-Payment: Home buyers looking to put down 20% will now be able to purchase a home priced at $766,187 ($40,250 increase)
What about 2017 FHA and VA Loan Limits?
The FHA and VA have not yet confirmed that they will adopt these new limits, but it’s very likely.
By the way, if you live in San Francisco, you’re probably saying to yourself “Home prices in MY neighborhood have gone up a lot more than 1.7% since 2007…”
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I really enjoyed working with Chad Baker and the rest of the team. This was our first time buying a home in California and we started with unnecessary assumptions based on our previous experience as home-owners in a different state. Chad and his team were available throughout the whole process, explaining the state differences, answering all our phone calls and emails quickly and directly, and providing detailed weekly status reports so that all parties including agents knew exactly where we were in the process. Chad was very experienced and provided customized loan products for us to consider, which definitely facilitated our transaction. I recommend the Chad Baker team! ”
I was amazed how quickly Chad was able to knocked out our refinance!. I highly recommend Chad he & his team did an incredible job! I had 3 others I was working with, including a Credit Union. Chad was able to offer me a lower rate with no fees! Based on the other 3 top financial bids I had for this refinance. ”
I was referred to Chad by my Realtor for a purchase of a new house. The experience with Chad and the team (I mainly worked with Juliann) was nothing short of outstanding. From start to finish there were always quick to respond and when needed, notify me of any new documentation that was required. There were very helpful explaining to me the pros and cons of different financing options as well as some other loan related issues, such as termite clearance outside the purchase contact and septic tank certification process. Overall, very knowledgeable and processional team. Loan preapproval was done in a single day and loan documents were ready for signing in 21 days, which was 9 days ahead of schedule. That never happened to me before.