There is good news for home buyers as Fannie Mae, the VA and FHA just increased their California borrowing loan limits effective as of November 30th 2018. These increases will help more buyers purchase a home with better financing options. For example, a conventional buyer can now purchase a home up to $500,000 with only 3% down and No PMI. A buyer in San Diego can now purchase a home up to $725k with only 5% down and No PMI with a conventional jumbo loan. Check out the rest of the new financing options available for buyers below.
Increased Loan Limits for Conventional Home Purchase Programs
Fannie Mae increased their CA conventional loan limit from $453,100 up to $484,350.
This means a buyer can now purchase a home up to $500,000 with only 3% down, which is the minimum conventional down payment requirement.
In higher cost markets like LA, Orange Co and SF etc, the conventional jumbo loan limit was increased from $679,650 up to to a maximum of $726,525. This means a buyer can now purchase a home up to $765,000 with only 5% down, which is the the minimum conventional jumbo down payment requirement.
In San Diego county, the conventional jumbo loan limit was increased from $649,750 up to $690,000. This means a buyer in San Diego can now purchase a home up to $725,000 with only 5% down.
In Riverside and San Bernardino counties, where loan limits always seem to be too low for some buyers, their conventional loan limit was increased from $453,100 up to $484,350. This means a buyer can now purchase a home up to $500,000 with the minimum conventional down payment requirement of only 3%.
Each county in California has their own specific loan limit. You can check your new county loan limit HERE for Conventional and Conventional Jumbo financing.
Overall, this is good news for buyers who require higher loan amounts to finance their home purchase.
Buy a Home up to $500,000 with Only 3% Down Conventional Financing and No Monthly PMI.
With the new higher conventional loan limits, a buyer can now purchase a home up to $500,000 with only 3% down.
Buyers also have the option to eliminate the monthly mortgage insurance “PMI” from their monthly mortgage payment.
All of the down payment can be gifted too, so this is a great option for buyers to purchase right away if they do not have the down payment saved up yet.
Click HERE for more information on how to qualify for the conventional 3% down program with No PMI, there is a Q&A section included too.
Buy a Home up to $765,000 with Only 5% Down Conventional Jumbo Financing with No Monthly PMI.
With conventional jumbo financing, a buyer can now purchase a home up to $765k with only 5% down.
Buyers also have the option to eliminate the monthly mortgage insurance “PMI” from their monthly mortgage payment.
Buyers in San Diego County can purchase a home up to $725,000 with only 5% down and No PMI.
Buyers in LA County, Orange County and SF County can purchase a home up to $765,000 with only 5% down and No PMI.
All of the down payment can be gifted too, so this is a great option for buyers to purchase right away if they do not have the down payment saved up yet.
Click HERE for more information on how to qualify for the conventional Jumbo 5% down program with No PMI, there is a Q&A section included too.
VA Loan Limits Increased Effective Immediately
The VA also increased their loan limits effective immediately too.
VA buyers qualify for zero down financing up to their county loan limit.
For example, a VA buyer can get zero down financing in San Diego up to $684,350.
VA buyers in LA county and Orange County can get zero down financing up to $726,525.
VA buyers in Riverside and San Bernardino counties can get zero down financing up to $484,350.
You can check your county loan limit HERE.
If a buyer needs to purchase a home price higher than the VA zero down county loan limit, the VA uses a formula for calculating the maximum loan amount financed. For example, on a $750k purchase in San Diego, the down payment due is only $15,000.
We can also give a VA buyer a 3% lender credit to cover ALL their closing costs. This means a VA buyer can purchase a home with No down payment due or closing costs either, and this also includes a credit for the appraisal fee.
FHA Loan Limits Increased Effective Immediately
The FHA also increased their loan limits effective immediately.
The FHA offers financing based on county loan limits. The FHA increased their CA conforming loan limit from $453,100 to $484,350.
This means a buyer can purchase a home up to $500,000 with the minimum FHA down payment requirement of only 3.5%.
In higher cost markets like LA, Orange Co and SF etc, the FHA jumbo loan limit was increased up to a maximum of $726,525, up from $679,650. This means a FHA buyer can now purchase a home up to $750,000 with the minimum FHA jumbo down payment requirement of only 3.5%.
In San Diego county, the FHA jumbo loan limit was increased from $649,750 up to $690,000. This means a buyer in San Diego can now purchase a home up to $715,000 with only 3.5% down.
In Riverside and San Bernardino counties, the FHA loan limit was increased from $453,100 up to $484,350. This means a buyer can now purchase a home up to $500,000 with the minimum FHA down payment requirement of only 3.5%.
You can check your county loan limit HERE.
Down Payment and Closing Cost Assistance For Buyers
If you know of a buyer that does not have the minimum down payment to qualify for any of these loan programs above, we have a terrific program available for buyers that combines either a Conventional and CalHFA loan or a FHA and CalHFA loan.
Buyers can purchase a home up to $700k in certain counties with No down payment and No closing costs.
CalHFA (California Housing Finance Agency) offers down payment and closing cost assistance loan programs to help first time buyers purchase a home. A first time buyer is defined as someone who has not owned a home in 3 years.
This program is available with both conventional and FHA financing. CalHFA gives buyers a small 2nd mortgage up to 3.5% to help cover the minimum down payment due with conventional and FHA financing.
If buyers don’t have enough funds for their closing costs, CalHFA will give buyers an additional small 3rd mortgage of up to 4% to help cover ALL their closing costs. Many buyers using this program only have to pay the upfront appraisal fee out of pocket.
Payments on the CalHFA 2nd or 3rd mortgage loans are deferred for the life of the first mortgage. The terms are the same as the first mortgage. There are no payments due unless you sell or refinance.
Click HERE for more information on this program and examples of how you can purchase a $450k or $550k home with zero down and no closing costs.
If you have questions about any loan program or you would like to get approved for one of these options above, please call me at 858-442-2686. I look forward to chatting soon.
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