Lots of new changes and regulations in loan guidelines yet again. Jumbo loans are still the most difficult to get. Whenever possible, a conforming loan – or a High Balance conforming loan will be the easiest to obtain.
High Balance Conforming loans are those above $417,000 but not large enough to be considered Jumbos. A High Balance loan follows similar guidelines to their smaller, conforming siblings. Their rates are only slightly higher.
For now, here are a list of the only counties in California that will do high balance conforming loans to $625,000. This limit was $729,750 but decreased as of October 1, 2011.
Eleven California Counties at New Maximum High Balance Limit of $625,500:
2. Contra Costa
3. Los Angeles
6. San Benito
7. San Francisco
8. San Mateo
9. Sana Barbara
10. Santa Clara
11. Santa Cruz
If you are buying a 2-4 unit, or if you are purchasing or refinancing outside these 11 counties, you can view the maximum limites here.
Now to add to the confusion, if your loan is above the $625,500 limit, which throws you into a jumbo, the size of your down payment is entirely dependent on your zip code. The lenders qualify each zip code A, B, C, or D. Whatever the guideline is for the particular loan you want, if you are in a “B” area, you will be required to put down 5% more, “C” is another 5% and “D” is a full 15% more. Unless your credit score is above 720, the loan is a purchase and the not above $2 million.
Do you have a headache yet?