Conventional Loan limits going up a bit in 2017 !

[HLS]

Announced today:
Agency Loan Limits for 2017

Conforming increase from $417,000 to $424,100,

Agency High Balance increased by County
San Diego will be $612,950
Orange/LA at max of $636,150.

[bearishgurl]

Interesting, HLS. Can you explain the Agency High Balance? Is that the difference between conforming and jumbo rates … possibly the “superconforming limit?”

[poorgradstudent]

So, 1.7 increase%?

Way less than the rate of home price increases, although about in line with overall inflation.

[spdrun]

^^^

That’s a good thing.

[poorgradstudent]

[quote=spdrun]^^^

That’s a good thing.[/quote]

Yeah. It also is one more reason to suggest the increases in home prices aren’t sustainable, as the gap between median home prices and conforming loan limits grows.

[gzz]

Poorgradstudent, I moved to SD during the big bubble and waited for it to pop before buying in 2011, even though I moved here to take a 6-figure job and could have purchased immediately. It was a 6 year wait for me.

I think you will have a much longer wait than me. Incomes are higher, rates are lower, population is higher, net worth is higher, Asian interest is higher, and we have none of the NINA 0% down insanity of 2003-07.

If you want to settle down in SD or anywhere nice on the West Coast I suggest you not wait.

[biggoldbear]

Agency High Balance increased by County
San Diego will be $612,950 From $580,750 ^5.5%
Orange/LA at max of $636,150 From $625,500 ^1.7%

Pretty sizable increase for the superconforming loan. This could make a difference in the $725k+ market. From personal experience, these loans “only” cost about 1/8% APR more than conforming. This would bring the max 80% LTV from ~$726k to $766k.

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