Jumbo Loan and High Balance Loans Ques.

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homer_simpson

homer_simpson

Well-known member
Hi Everyone,

Just a question about Jumbo Loans and High Balance Loans.  I am really new to home buying and am considering purchasing a resale home in Irvine for around $580,000.  If I were to down $116,000 (20%) it would make my loan amount $464,000.  From my understanding, loan amounts above $417,000 is considered a Jumbo Loan?  I heard that different counties have different loan limits and that Orange County has a higher limit then $417,000 so it wouldn't be considered a Jumbo Loan?  What am I missing here.  Can someone help clarify this up.

Thanks!  :D
 
The true jumbo loan starts at $729K for Orange County.  Amount between $417K and $729K usually will have a rate 1/8 to 1/4 % higher than loans below $417K
 
Over 417k is non-conforming. Keep in mind GSE guidelines are bubbly. That being said, Irvine2Irvine is correct in that you'll be paying a higher rate than if you got under that 417k limit.
 
$1.0 to $417k - Standard Conforming.
$417,001k to $729,750k - High Cost Area Jumbo Conforming (temporary limits).  Some Counties have lower limits, but OC/LA have the $729k cap.

There will be a push to reduce the Conforming loan limits lower (both the standard and HCAJC limits) come September, when Conforming Limits are annually adjusted. There will an equally strong push from the Real Estate industry to retain these limits. Without Conforming Loan limits where they are, prices will collapse. We often see homes priced at $900 - $950 that did not sell when they were priced at $1m because the reach for acceptable financing was too far.

My .02c

Soylent Green Is People.
 
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