High Balance Conforming Limits 

 You've heard that the conforming balances have changed, but what does that mean to you? 

Conforming loans have lower rates than "jumbo" loans.  (Note however, that "High Balance Conforming Loans" will be slightly higher than the standard conforming loan which is no more than $417,000.) All conforming loans have very specific guidelines and are usually easier to acquire than larger loans.  They are also regulated by Fannie Mae, Freddie Mac or FHA which lays out very specific guidelines

As of January 1, 2009, the limits have changed, but the change is not across the board.  They now are broken down by county which doesn't make a lot of sense.  Take Riverside County for example.  The expensive properties in the Palm Springs area are lumped in with the tract homes in other parts of Riverside County.  This means that Palm Springs suffers from a lower average home price than other counties such as Los Angeles, San Francisco or Orange counties.  If you purchase or refinance a home in the Palm Springs area, your maximum loan amount, to stay in the "conforming" range is only $417,000 compared to $626,000 in Los Angeles.

This will mean a higher rate, but all things considered, you rate will still be favorable compared to previous rates.  Also, please note that some lenders don't work off the conforming numbers at all, but when you hear low rates advertised, they will most always be based on a loan under $417,000, no matter where the property is.

Confusing?  That's what we're here for.  Let us know what we can do to guide you to the most cost effective solution.

Below you will find the limits for your county.