Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Excuse my ignorance, but what do you mean the "conforming side?" I thought the FHA limit was part of what made a loan a "conforming" loan -- ie, the FHA limit plus other requirements?
I looked up Yolo County, California, and it shows $580k for a single-family "FHA Forward." Is that now the limit for a conforming loan before you go into Jumbo rates? It also says $362,790 for HECM and $580k for Fannie/Freddie, but I'm not sure what to do with those numbers.
Ok, just read an article on bankrate.com and re-reading renriq02 posts, I think I'm starting to understand . . .
So Fannie/Freddie are the government sponsored companies that buy the loans and loans falling under their guidelines are "conforming loans." Loans above their limits are Jumbo loans. Lenders traditionally set lower interest rates for conforming loans than Jumbo loans since they can resell them to Fannie/Freddie.
FHA loans are loans insured by the federal government. FHA-insured mortgages are usually at lower interest rates than non-FHA insured since theyr'e government insured. On the link you gave, the "FHA Forward" is the limit for FHA loans.
renriq02, thanks so much for posting this. You made my day! We're in NJ and building a house due in May and soooo excited not to have to do a Jumbo. Conflicting information we've gotten during the last few weeks had made it unclear whether or not we'd be under the new ceiling, but we are.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
).
