For those of us who have been watching Congress over the last few months hoping for a change in the extension of the higher loan limits, unfortunately that day never came. The new Sonoma County Loan Limit is $520,950. This is in place for all loans including FHA loans as well as conventional high balance loans.
If your loan amount is one dollar over $520,950 guess what? You’re going to be now placed into the jumbo mortgage loan category. The jumbo mortgage loan category carries a higher premium then loans otherwise bought and sold by Fannie Mae and Freddie Mac.
This affects homeowners hoping to refinance as well as folks looking to purchase new real estate. It has to do with the tightening of the loan limits that were originally enacted a few years ago so Fannie Mae and Freddie Mac could purchase a larger lion’s share of the mortgage market.
The Sonoma County Loan Limit is $520,950 for all loans up to this amount.
If your loan amount is under $520,950 you’re in the clear as far as being able to obtain lower cost mortgage financing. We’ve enjoyed the lower loan limits for the last two years and now that number has been reduced back down to $520,950. Here is a list County by County of all the California Loan Limits.
The hope was that Congress would keep the old loan limit which was previously $662,500, but that extension never came. The California Association of Realtors among other lobbyists are in the process of trying to get the loan limits extended, perhaps they’ll be successful in a few months.
Get a conventional loan or an FHA loan with the new loan limits with the competitive mortgage rate quote. We can discuss the new Sonoma County loan limits of $520,950.