SAN DIEGO, Feb. 25, 2014 /PRNewswire-iReach/ -- LoanLove.com, a home loan borrower advice website that empowers borrowers with first class knowledge, valuable resources and connections to top rated industry professionals, recently released a guide that takes a look at the 2014 loan limits for conforming, conventional and FHA loans. The guide is meant to help prospective home buyers to better plan for their upcoming purchases.
The article first explains, "Prospective home buyers shopping around for conforming, conventional and FHA loans in 2014 will find only a few changes in loan limits compared to last year. For the most part, the limits—which set the maximum allowable loan size for a mortgage in a given geographical area—remain at 2013 levels, other than a few adjustments up or down in some high-cost regions."
Loan Love goes on to state that for the ninth consecutive year, baseline conforming loan limits will remain at their current levels. This means that the 2014 loan limits for conforming loan have not changed. However, the article also explains that there have been increases in loan limits in some areas as well. It states, "High-cost area loan limits have increased in 2014 for 18 counties due to a high-cost area adjustment or new designation as a high-cost area. Currently, conforming loan limits in high-cost areas within the contiguous United States max out at:
• $625,500 for a one-unit home
• $800,775 for a two-unit home
• $967,950 for a three-unit home
• $1,202,925 for a four-unit home"
Next the article goes on to explain that 2014 loan limits for conventional loans generally follow those of conforming loans. It explains, "While you can get approved for a conventional loan that does not fit within the conforming loan limits, your lender would not be able to resell your nonconforming loan to Fannie Mae and would then be taking on greater risk. This is why most lenders adhere to these limits."
Lastly the guide takes a look at the 2014 loan limits for FHA loans. It explains, "The Department of Housing and Urban Development (HUD) implemented new single-family loan limits for high-cost areas under the FHA loan program for 2014 as well. While the standard loan limit for areas where housing costs remain relatively low will stay unchanged at $271,050, the new national maximum loan limit for the highest-cost areas has been reduced from $729,750 to $625,500, which mirrors conforming loan limits for single-family homes in most high-cost areas."
To learn more about the loan limits for 2014, please click here to read the full article on LoanLove.com.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, email@example.com
News distributed by PR Newswire iReach: https://ireach.prnewswire.com