Mortgage Loan Limits are Going Up in SoCal

Filed under: Mortgage News

This topic has been all over the news lately: the new loan limits. Every year, Fannie Mae and Freddie Mac re-evaluate conventional loan limits. They go back to look at how much appreciation they saw in Q3, then they increase the loan limits based on the current real estate industry.

New Loan Limits for Conventional Loans

I can’t understand how they are doing it this year, but they still haven’t announced their new loan limits. But all the lenders have applied enough pressure, and even before the end of the year – we are already offering loan amounts up to $625,000 for conventional standard balance. In some counties, particularly in California (areas like LA and Orange County), some of those are up to $900,000 for a conventional loan with options for 5% down.

These changes are big! At some point, typically in December, Fannie Mae and Freddie Mac will announce what the actual increase is. I think most people are assuming it will be higher. The great news is that starting right now, we can offer conventional loans with amazing interest rates and loan amounts up to $625,000. That’s an increase of over $75,000 higher than the current standard balance.

How Much are You Putting Down?

A few other interesting numbers:

  • 3% down on a conventional loan. You can go up to $644,000 loan for first-time homebuyers – with unbelievable conventional rates.
  • 5% down and you don’t have to be a first-time homebuyer. You can get all the way up to almost $658,000.

It’s really cool that we can start offering these high loans. Stay tuned as we got closer to the end of the year and can start offering the actual loan amounts determined by Fannie Mae and Freddie Mac.

If you know anyone who is looking for a lower down payment and can’t compete because they are stuck at the old $548,000 loan amount, then it might be a good time to connect them with our team at Franklin Loan Center.

The end of the year is a great time for buyers. Reach out to Bill Provost of Franklin Loan Center if you have questions or need help with financing your home. Call (425) 241-1922 or email