San Diego, CA (PRWEB) March 14, 2014
LoanLove.com is a borrower advice website that has become a trusted destination for current news and expert loan advice. The website strives to empower borrowers with first class knowledge, valuable resources and connections to the top rated industry professionals. Recently the website released a guide that takes a look at the expectations for conforming conventional and FHA loan limits for 2014. By taking a look at these limits, prospective borrowers will be able to determine what type of jumbo loan limits 2014 will see.
To understand 2014’s jumbo loan limits, borrowers will first need to understand what a jumbo loan is. Jumbo loans are loans that require a larger borrowed amount than the maximum limits set above. These loans are usually used to purchase luxury homes and many buyers see taking out a jumbo loan as an investment, not only in their future property ownership benefits, but in their quality of life. However, because approving loans that are fall outside conforming loan limits is a big risk for lenders, those who need a jumbo loan to buy their property will need to prepare for much closer scrutinization when it comes to their finances.
The following are the conforming loan limits set for 2014. Any loan amount higher than those stated below would be considered a “jumbo mortgage”.
As of this year, these limit is set at:
- 1-unit home : $417,000
- 2-unit home : $533,850
- 3-unit home : $645,300
- 4-unit home : $801,950
The above limits are the baseline limits for 2014, and they remain the same as previous years. Higher limits exist for areas where the cost of living is higher. Limits for most of these areas are set at:
- $625,500 for a one-unit home
- $800,775 for a two-unit home
- $967,950 for a three-unit home
- $1,202,925 for a four-unit home
These limits apply to most “high-cost” areas; however, maximum loan limits are even higher in Hawaii, Alaska, Guam, and the U.S. Virgin Islands. The article also explains, “While no counties will see a decline in conforming loan limits for 2014, among the several counties where borrowers can take advantage of an increase, are two counties in Virginia, three counties in New York and five in Massachusetts. Several lesser-known metropolitan areas have also seen the conforming loan limit raised for 2014, including Garfield, Colo., which will see loan limits climb all the way to $625,000. Among some of the other cities affected by the higher loan cap in the contiguous states are Boston; Newburgh, N.Y.; Poughkeepsie, N.Y.; and Culpeper County, Va.”
Because it can be much more difficult to attain a jumbo loan, some home loan borrowers who are able to instead opt to pay a higher down payment in order to reduce the total loan amount to comply with conforming loan limits.
For more information on the different loan limits set for 2014, please read Loan Love’s full guide by clicking here.