Each of these counties has a difference loan limits for single home vs. two, three and four units. Fannie Mae and Freddie Mac evaluate these limits each year and determine the new limits and one of the factors they use is cost of living for each of these counites. In 2022 $970,800 was the highest for few counties in California and $647,200 was the lowest, so where you decide to purchase will make difference in your lending ability.

This is very common when borrowers are looking to purchase their new home close to county lines and while shopping, they cross over to other counties and loan limits are totally difference. Great example would be Los Angeles County is boarder with San Bernardino County and Orange County is bordered with both Riverside County and San Bernardino. While Los Angeles County and Orange County loan limits set by Fannie Mae and Freddie Mac is $970,800 and Riverside County and San Bernardino County loan limits are $647,200.

If a borrower loan amount is $650,000 in Los Angeles and Orange County, they are looking at a conforming loan while in Riverside and San Bernardino is a Jumbo which has whole sets of rules.

Conforming loans you can put as little as 3% down while Jumbo you are starting at 10.01% down and other major factor is jumbo requires reserve for multiple months based on DTI, FICO and other factors. It’s recommended to get your pre-approval before you start your house hunting, call us today and we can help you. www.khanhomeloan.com