SAN DIEGO, March 4, 2014 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that has become a trusted destination for current news and expert loan advice. The website strives to empower borrowers with first class knowledge, valuable resources and connections to the top rated industry professionals. Recently the website released a guide that takes a look at the expectations for conforming conventional and FHA loan limits for 2014. By taking a look at these limits, prospective borrowers will be able to determine what type of jumbo loan limits 2014 will see.
The Loan Love article starts by saying, "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."
The article goes on to explain the 2014 loan limits for conforming loans. As of this year, these limits are set at:
- 1-unit home : $417,000
- 2-unit home : $533,850
- 3-unit home : $645,300
- 4-unit home : $801,950
The above limits are the baseline limits for 2014, and they remain the same as previous years. Higher limits exist for areas where the cost of living is higher. Limits for most of these areas are set 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
These limits apply to most "high-cost" areas; however, maximum home loan limits are even higher in Hawaii, Alaska, Guam, and the U.S. Virgin Islands.
Jumbo loans are loans that require a larger borrowed amount than the maximum limits set above. These loans are usually used to purchase luxury homes and many buyers see taking out a jumbo loan as an investment, not only in their future property ownership benefits, but in their quality of life.
Because jumbo loans are more difficult to attain, have stricter credit requirements and associated interest rates, and because they are much riskier investments than conforming loans, some home buyers who purchase housing that falls outside conforming limits work towards getting the loan size down to standard limits, usually by increasing their down payment. However, this is not always possible, in which case a jumbo loan will be the only option. As of 2014, any loan amount higher than the limits set above is considered a jumbo loan, so those who are shopping for their dream homes should take note and prepare accordingly.
For more information on the 2014 loan limits, please click here to read the full guide on LoanLove.com.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, firstname.lastname@example.org
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