Here’s what the new conforming loan changes mean for San Diego’s market.
Today I want to talk about the new conforming loan limits in San Diego and what they mean for you.
First off, what is a conforming loan? Basically, a conforming loan is any loan that meets guidelines set by Fannie May and Freddie Mac. These allow buyers to get loans with a lower down payment and more favorable terms. They have a price limit, and anything above this limit is called a jumbo loan.
To put things simply: The good loans, the ones with great terms and reasonable down payments, just became easier to get. The loan limit was recently raised from $753,000 to $879,000.
As a buyer, this means you have more options. If you go over the limit and have to get a jumbo loan, you usually have to pay a down payment of at least 10%. Now, you have the option to buy a great home with a lower down payment and more favorable terms.
However, this isn’t only great news for buyers. The new limit is right around the average price of a home in San Diego. Now that more buyers are likely to qualify for better loans, you could see an influx of demand for your home.
The jargon can get a little confusing, so if you need a quality lender or someone to bounce questions off of, please give me a call. I’d love to help in any way I can. Happy holidays!