$ 765,600 in pricier county regions in California that include :
* Alameda * Contra Costa * Los Angeles * Marin * San Benito * San Francisco * San Mateo * Santa Clara
Image by Gerd Altmann from Pixabay
FHA Loan Amount Limits for 2020
Each year , the Federal Housing Finance Agency ( FHFA ), Federal Housing Administration ( FHA ), and the Department of Veteran Affairs ( VA ) revise their maximum loan limits for onetofour unit residential properties by county regions across the nation .
The FHFA establishes the baseline conforming loan limit that meets or “ conforms ” to certain qualifying underwriting guidelines that are established by the two largest secondary market investors or GovernmentSponsored Entities ( GSE ’ s ) named Fannie Mae ( Federal National Mortgage Association ) and Freddie Mac ( Federal Home Loan Mortgage Corporation ).
After a mortgage company , wholesale lender , or bank funds a loan , they usually need to sell it off into the secondary market to Fannie Mae , Freddie Mac , or to another secondary market investor so that the financial institution doesn ’ t run out of money . As a result , the lender will
underwrite and approve borrower ’ s loan applications that both meet their own guidelines as well as the secondary market investor ’ s requirements . If not , the financial institution might be stuck with the funded loan , and will not be able to transfer it to another secondary market investor .
A conforming loan that is saleable or transferable to Fannie Mae or Freddie Mac and FHA loans are typically based upon median home prices in each county region . California , and other expensive states to live in that are typically near ocean locations or prime metropolitan regions , have “ highcost ” county loan limits that can reach as high as 150 % of the baseline mortgage limit that is derived from local median home prices in that same county region .
FHA has a minimum loan amount or floor limits that go as low as $ 331,760 for a oneunit property ( singlefamily home , condominium , townhome , etc .) as of January 2020 . FHA has maximum loan amount limits that rise to as high as
Maximum Residential ( OnetoFour Unit ) Loan Limits in 2020
For so long as the owner lives in one of the units for a duplex , triplex , or fourplex property , the same owner may qualify for the maximum residential LTV ranges just like he or she would for a singlefamily home . Many times , the adjacent tenant or tenants will pay enough in monthly rent to cover the owner ’ s monthly mortgage payment .
Single ( singlefamily home , condo , townhome ) $ 765,600
Duplex ( two units ) $ 980,325
Triplex ( three units ) $ 1,184,925
Fourplex ( four units ) $ 1,472,550
Image by F . Muhammad from Pixabay
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