FHA, Conventional, Commercial Lending
Call Jay "The Rehab Man" (312) 401-5626
If you borrow at or below the conventional loan limit for non-government mortgages, you would have what is generally
known as a "conforming" loan. If the amount borrowed is above the conventional loan limit, you would have a "jumbo"
loan and face a somewhat higher rate because larger loans imply more lender risk.
There are also loan limits for FHA loans and for VA mortgages. With these federal programs, there are no "jumbo" loans
in the usual sense.
For the year 2007, loan limits look like this:
For conventional mortgages (those which may be purchased from local lenders by national organizations such as
Fannie Mae and Freddie Mac), the loan limits for owner-occupied properties are:
One-unit properties: $417,000
Two-unit properties: $533,850
Three-unit properties: $645,300
Four-unit properties: $801,950
The conventional limit for second loans is $208,500.
In theory, there is no limit to the amount lenders can provide under the VA program. In practice, local lenders in 2007 will
generally lend up to $417,000 with no money down. For additional information regarding VA loans, see:
The FHA loan program also has loan limits for owner-occupied homes under its 203(b) program, the most-common
FHA option. FHA limits vary according to whether you are in a "high cost" or "low cost" area, or somewhere in between.
As with conventional loans, the financing limit is higher for properties with multiple units -- two-to-four units with at least
one owner-occupied. To check the FHA loan limits for the community where you wish to buy or refinance, please go to
the FHA loan limit page. https://entp.hud.gov/idapp/html/hicostlook.cfm
In addition to conventional, FHA, and VA loans, there are also "non-conforming" loans made by lenders. These
mortgages often have higher loan limits and other attractive standards.
IMPORTANT: Loan limits change from time to time. For details regarding loan limits, for
non-conforming loan information, and to confirm the information presented here, please
speak with me directly at (312) 401-5626.
|Conventional, VA and FHA Loan Limits