Conforming Loan Limits are raised to $1,089,300 by the Federal Housing Finance Agency, and this is a big deal for home buyers in California.
Why is it so? because "jumbo loans" which amounts would be higher than the "conforming loan limit" are less flexible in their conditions. This means that buyers can qualify more easily as they seek to purchase a California home, which is often much higher than the previous limit of $970,800 in high cost areas. This nationwide figure needed to adjust to the price level that is more common in California.
“C.A.R. [the California Association of Realtors] applauds the FHFA for its continued commitment to
homeownership by increasing the conforming loan limits. The higher limits will
help make homeownership more accessible to Californians across the state and
provide homebuyers with more financing opportunities,” said C.A.R. President
Jennifer Branchini, a Bay Area REALTOR®. “This year in California, nearly one
out of every four homes sold between $1.25 million and $2 million were
purchased by first-time homebuyers,” Branchini said.
C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® (NAR) both have long advocated
for loan limits that reflect an area’s cost of housing. As a result of C.A.R.’s
and NAR’s efforts, areas with high median home prices have benefited from a
loan limit above the national conforming loan limit.
Source: California Association of Realtors
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