Great news for homebuyers in Los Angeles and in the Bay Area, Fannie Mae and Freddie Mac have set new conforming loan limits for a one-unit residence from $647,200 to $726,200 starting in 2023. They also establish a ceiling of $1,089,300 for high balance loans on one-unit homes. The high balance loans are subject to county limits.
It is an excellent step forward to help many first-time homebuyers. Instead of getting a Jumbo loan, a buyer can now bring in 5% down payment for a conforming loan (or 10% down payment for high-balance loan) to qualify for Fannie Mae and/or Freddie Mac backed loans.
If you have limited down payment, FHA loans will work as well. You can put down as little as 3.5% down payment. For example, you can bring a down payment of $39,375 on a purchase of a $1,125,000 single family home.
The loan amounts will be higher if you are thinking of purchasing a 2 – 4 units residence. Call me at 925-216-3618 today to find out more.
