11/26/24 – New Loan Limits

Fannie Mae Loan Limit Increase for 2025

Fannie Mae has announced an increase in the conforming loan limits for 2025 to $806,500, with high-balance loans reaching up to $1,209,750 in certain counties, including Los Angeles and Orange Counties.

For FHA loans, the new limits will take effect starting January 1st. However, VA loans have no limits and will remain unaffected.

What Does This Mean for Buyers?

Great question! Starting in January, with an FHA loan, you could purchase a home for $1,250,000 with just 3.5% down and a 580 credit score. Similarly, a conventional loan with 5% down could allow you to buy a home for up to $1,273,000.

Additionally, loan amounts under $806,500 benefit from lower interest rates, making homes in the $850,000 +/-range more affordable.

A Little History:

When I started the business 34 years ago, the conforming loan limit was only $187,450! Since then, Fannie Mae has kept the limit, although it froze twice (from 1993-1995 and 2006-2016). The introduction of high-balance loans came in 2008.

I hope you enjoyed that brief history lesson!

Happy Thanksgiving!

I am writing to express my gratitude to all of you for allowing me to assist with your loans and financial needs over the years. It’s been an incredible journey, and I’m truly thankful for the great clients and friends I’ve made. I’m available throughout the week if you need anything, whether it’s questions or helping a client with a property purchase.

Contact Information:

• Cell: 661-714-6258
• Office: 661-260-2970 ext. 2222
• Direct Line: 661-291-2222
• Email: Mike@AugustaFinancial.com

Interest Rate Updates:

• Rates are slightly higher today but were strong on Monday. They should remain steady for the rest of the week, with more data expected next week.
• Loan Types and Rates (LA County):

• 1. Conventional/FHA/Jumbo/Bridge Loans: 12-day escrows if your buyer is pre-approved

• 1. FHA/VA/USDA: 5-6%

• 1. Conventional (up to $806,500): Low 6%

• 1. High Balance (up to $1,209,750): Low 6%

• 1. Jumbo Loans (above $1,209,750): Mid to high 6%

• 1. Bank Statement Loans: 10% down, higher rates for larger down payments

• 1. Profit & Loss Statement Loans: 20% down, no bank statements required

• 1. No Income Qualifier Loans: 40% down, rates in the 8% range

• 1. 0% Down Loans: High 6% with 620+ credit score, up to $1,191,000

• 1. Hard Money Loans (Private Lenders): 35% down

• 1. Bridge Loans: Typically 7.99%, limited fees

• 1. Buydowns: 3/2/1, 2/1, and 1/0 Buydowns available at great start rates

Note: Interest rates and loan limits are subject to change. The above rates are for LA County.

Condo Updates:

• Good News: No updates.
• Bad News: Stratford Condos in Stevenson Ranch have insufficient insurance coverage and are now on the “naughty list.” You can check the full list of restricted condos on MikeMeena.com.

Let me know if you hear about any other condo issues or have questions about properties.

Remember, I’m here to help! Feel free to reach out if you have a buyer in mind or need more information on loan options.

Have a wonderful Thanksgiving, and I look forward to working with you soon!

Best regards,

Mike Meena

Phone: 661-714-6258 | Email: Mike@AugustaFinancial.com