FHFA Increases 2018 Sonoma County Loan Limits

The Federal Housing Finance Agency just released the new 2018 national loan limits. These loan limits provide increases in most counties throughout the United States. Here’s how the changes will benefit you when buying or refinancing a home.

The loan limit increase changes the conforming loan limit from $424,100 to $453,100. This increase allows for getting a lower-priced mortgage since the most aggressive types of mortgages in terms of rate and pricing typically tend to be within conforming loan limits.

The FHFA has also increased high balance loan limits in most areas throughout the United States. Looking at Sonoma County, California for example the maximum loan was $595,700 and now that loan limit is $648,600 for 2018. This additional $45,000 plus of spending power means you can get conventional financing on a bigger mortgage loan size. Put another way, a bigger loan limit means you can still stay within conforming mortgage lending requirements avoiding jumbo mortgages. Jumbo mortgages have tighter debt to income ratio requirements at 43%, require ultra-high credit scores, along with large income and significant assets in the back.

The FHFA’s decision to increase loan limits nationwide points to a broader trend in rising incomes leading towards greater housing prices. People purchase houses when they’re feeling good about their jobs and financial future. The two factors that drive housing prices bar none is job growth and low unemployment.

These changes will likely be the catalyst for the FHA to follow suit in the coming weeks. Typically, but not always the FHA mirrors county maximum loan limits for Fannie Mae and Freddie Mac mortgages.

These changes will make it easier to qualify for mortgages for borrowers whose income and financial pictures do not support the banking requirements most jumbo mortgage investors seek.

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When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

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