The California Association of Realtors (C.A.R.) President Geoff McIntosh, in response to the Federal Housing Finance Agency’s (FHFA) announcement to increase the 2017 conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac said, “C.A.R. applauds FHFA Director Mel Watt for raising the existing Fannie Mae and Freddie Mac conforming loan limits, which will provide stability and certainty to the housing market and give tens of thousands of California homebuyers a chance at homeownership, the FHFA recognizes that home prices have recovered, not just in California but also across the nation. Many higher-priced areas of the state will benefit greatly from the higher limit.”
The increase went from $424,100 on one-unit properties and a cap of $636,150 in high-cost areas. The previous loan limits were $417,000 and $625,500, respectively. Both the C.A.R. and the National Association of Realtors (NAR) have pushed for making these higher conforming loan limits permanent. Because of these efforts, cities with high median home prices have benefited from a loan limit above the national conforming loan limit.
The conforming loan limit is based on the maximum size of mortgage that government-sponsored enterprises (GSEs) Mae and Mac can buy or “guarantee.” Contrary to the non-conforming, also known as the “jumbo loans” which typically have tighter underwriting standards and carry higher mortgage interest rates than conforming loans. This increases the monthly payments and hamper the ability of families in California to purchase homes because they would be too expensive.
For more information about the California Association of Realtors or purchasing a Chino Hills home, contact Erika Shinzato, top real estate agent in Chino Hills (91709) and surrounding areas at (714) 485-3998.