Jumbo Loans – Leaving the Chicago Winter Behind
The Chicago winter is creeping up, and, once again, the perennial statement enters your head:
We have got to move someplace warm.
When considering taking out a jumbo loan in your Dream City, USA it is important to know that conforming loan amounts are not the same everywhere you go. In Chicago, the FHFA’s baseline conforming loan limit of $484,350 applies. Any loan amount above $484,350 is considered non-conforming, or jumbo, and will not be back by government sponsored enterprises.
This annually adjusted conforming loan limit applies to all but 47 counties in the United States. But before we start daydreaming about a quaint million-dollar home in sunny Palm Springs, let’s take a look at the factors which affect conforming loan limits.
High Cost Areas and Jumbo Loan Amounts
High cost areas are counties in which 115% of the local median home value exceeds the baseline. The conforming loan limit in these areas is set as a multiple of the median home value.
Take San Diego, for example, where the median home prices hovers just under $600,000 and the conforming loan limit is $690,000. Now you may be asking yourself, what about places like San Francisco, where the median home price is over $1 million!? A conventional mortgage might require upwards of $100,000 dollars in the checking account for an area like that. Luckily, there is a ceiling set at 150% of the baseline. This means, no matter where you decide to flee this winter, the maximum conforming loan limit will be $726,525.
Conforming Loan Limits Out of State
Here are a few locales of note. Some warm, some mild, and some for those who just cannot leave the thought of snow behind.
Honolulu, Hawaii – $726,525
Orange County, California – $726,525
Monterey, California – $652,050
Bridgeport, Connecticut – $601,450
Denver, Colorado – $561,200
Before you decide to leave town, check out our jumbo loan mortgage calculator here to start you search. Want to search more? Consult with one of our local experts today.