New Conforming Loan Limits

These numbers impact you significantly in that each threshold increases either your rate or the difficulty to qualify for the loan. For example, if you are buying a $740,000 home, and you are making a $100,000 down payment, your loan amount would fall under the conforming limit of $647,200. This means that you get to qualify with the most loose guidelines, and it normally has the best interest rates as well.

As a buyer looking to borrow more than the conforming limit, but still under the high balance limit specific to your county, you will have to pay a slightly higher interest rate than if your loan was under the conforming limit. On the positive side though, you can borrow all the way up to the high balance limit in your county without having to borrow using a jumbo loan. To summarize jumbo loans, they are non-conforming, large loans that have much stricter qualifications that must be met, as well as typically requiring a higher interest rate. 

There are many details and ins and outs that can be discussed with this, but know that at the end of the day, you benefit as a consumer when trying to purchase homes at today's prices! If you would like more information, reach out and I will connect you with a lender that I know personally.