San Diego, CA (PRWEB) February 25, 2014
LoanLove.com, a home loan borrower advice website that empowers borrowers with first class knowledge, valuable resources and connections to top rated industry professionals, recently released a guide that takes a look at the 2014 loan limits for conforming, conventional and FHA loans. The guide is meant to help prospective home buyers to better plan for their upcoming purchases.
The article starts by stating, “Prospective home buyers shopping around for conforming, conventional and FHA loans in 2014 will find only a few changes in loan limits compared to last year. For the most part, the limits—which set the maximum allowable loan size for a mortgage in a given geographical area—remain at 2013 levels, other than a few adjustments up or down in some high-cost regions.”
Loan Love goes on to explain that as far as 2014 loan limits for conforming loans go, not much has changed. It says, “The term “conforming loan” refers to whether a loan product meets guidelines put into place by Fannie Mae and Freddie Mac. After being raised to $417,000 for single-family homes back in 2006, baseline conforming loan limits have remained steady, even as home values dropped across the country.”
These limits were increased, however, in several high cost locations. In most of these areas, conforming loan limits max out at:
2014 loan limits for conventional loans follow those of conforming loans. Loan Love explains, “The term “conventional loan” refers to loan products that are not backed by the government. Conventional loans may or may not be conforming loans, therefore. FHA and VA loans, by contrast, would be considered unconventional loans.” It also notes that, “While you can get approved for a conventional loan that does not fit within the conforming loan limits, your lender would not be able to resell your nonconforming loan to Fannie Mae and would then be taking on greater risk. This is why most lenders adhere to these limits.”
2014 loan limits for FHA loans have also increased in several high cost areas this year. The guide says, “While the standard loan limit for areas where housing costs remain relatively low will stay unchanged at $271,050, the new national maximum loan limit for the highest-cost areas has been reduced from $729,750 to $625,500, which mirrors conforming loan limits for single-family homes in most high-cost areas.”
To find out more details about the changes to loan limits in 2014, please click here to view the full article at LoanLove.com.