I have a question for the experts – admittedly, I’m not a finance guy.

Using the above example, I was under the impression that the $417K limit was for purchase price, not loan amount. Thus, the 20% down would shift exposure to downside price risk from the lender to the buyer.

I guess that it could go either way, but could someone who knows confirm this? Is it $417k loan value or purchase price for a conforming loan?

If it’s loan value, does that predicate a 20% down – thus setting the max purchase price at ~$521K with a $104K down? If so, I think that half-million will be the new magic number…