Conforming Loan Limits Continue to Impede Housing Recovery

Conforming Loan Limits Continue to Impede Housing Recovery

The availability, or lack thereof, of mortgage financing has been one of the biggest factors impacting the pace of the housing market recovery. Loan limits on federally-backed mortgages have not kept pace with the rise in housing prices, particularly in high cost markets such as core-market California. For example, in Los Angeles County, the conforming loan limit is $625,000, which is insufficient to finance many homes in the submarket. The benefits to borrowers in qualifying for a federally-backed mortgage, include: lower downpayment requirements, as low as 3%; lower credit score thresholds, as compared to a private jumbo loan; and, lower interest rates.

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Michael Anderson
Michael Anderson 244 posts

Over the course of his 30-year career, Michael Anderson has worked in the residential development industry in the Pacific Northwest, Northern California and Southern California. He has acquired residential land in excess of $300M for both land development and homebuilding entities and has overseen the construction of approximately 2500 homes. Currently, in semi-retirement, and based out of Newport Beach, CA, Michael continues to invest in and stay abreast of the land markets.

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