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JUMBO LOANS ARE BIGGER. THAT'S GOOD NEWS.

As a real estate agent, I’m stoked that home prices around here keep going up. As a person, it’s not quite as simple. Sure, my own home is worth more. But if I were to sell it, where would I go? Any house I’d buy would be more expensive, too. 

Plus, I have lots of friends who don’t own their own homes yet and that has nothing to do with how persuasive I am. Houses around here are expensive. Even a 3% downpayment can be hard to save up when you’re subsidizing your landlord’s mortgage. 

But hey, there’s a silver lining to that huge, dark cloud. The Federal Housing Finance Agency announced that starting in 2018, maximum conforming loan limits were increased to $453,100. 

What does that mean in English?

Up to a certain amount a home loan is what’s called “Conforming.” Above that, it’s “Jumbo.” Conforming loans require you to put less money down than jumbo loans. They also come with better interest rates. And allow your lender to consider a higher percentage of your income for you to qualify for the loan. 

Last year, a loan over $424,100 was considered jumbo. But if you look at home prices, the median here (according to Zillow), is $450,000.

This year, the limit was raised so that loans up to $453,100 are considered conventional. 

Yeah, it doesn’t make houses cheaper. But it makes more expensive houses more affordable. If that makes sense. 

You can reach me at 310-854-2458 or by email at brian (at) belefant (dot) realtor.

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