Home buyers in Riverside County, California will get higher conforming loan limits in 2017, thanks to recent actions by a key federal housing agency. The revised loan limit for a single-family home will increase to $424,100 in 2017, compared to $417,000 in 2016.
Riverside County Loan Limits Increased for 2017
On November 23, the Federal Housing Finance Agency (FHFA) announced that it would raise the baseline conforming loan limit for most counties across the United States.
According to an FHFA news release: “In most of the country, the 2017 maximum loan limit for one-unit properties will be $424,100, an increase from $417,000. This will be the first increase in the baseline loan limit since 2006.”
Note: In this context, a “one-unit” property is a regular single-family home. The other categories refer to multi-family properties such as duplexes, triplexes, etc. If you’re using a mortgage loan to buy a single-family home in Riverside County, $424,100 is the conforming loan limit you’re concerned with.
What Is a Conforming Loan?
If you’re not familiar with the term, a “conforming” loan is one that meets size restrictions and other requirements for purchase by Freddie Mac and Fannie Mae, the government-sponsored corporations that buy and sell bundled mortgages. A conforming loan can be sold into the secondary mortgage market, via Fannie and Freddie.
Anything that exceeds the limits shown above is referred to as a “jumbo” loan. Jumbo mortgage products often require larger down payments and higher credit scores due to the larger amount being borrowed, and the higher level of risk.
Rising Home Prices Led to the Increase
Conforming loan limits vary by county and are based on median home prices. Federal housing officials raised the baseline limit for 2017 in response to rising house values nationwide.
According to the real estate data company Zillow, the median home value in Riverside County rose by more than 5% over the last year or so (Nov. ’15 – Nov. ’16). The company’s economists expect prices to rise by an equal amount during 2017.
As of November 28, 2016, the median home value in the county was $330,000, which is well below the single-family conforming loan limit of $424,100. This means that home buyers in Riverside County should have plenty of properties to choose from without crossing over into “jumbo” mortgage territory.
Need a Mortgage in Riverside?
Bridgepoint Funding has been helping California home buyers for more than 15 years. We offer a wide variety of loan programs including FHA, VA and conventional. Our business model allows us to deliver highly competitive rates, and you won’t find a higher level of customer service anywhere else.
If you need a mortgage loan to purchase or refinance a home in Riverside County, please contact us today. We can help you choose the right type of loan based on your financial situation and goals. We look forward to hearing from you!
Learn more: Want to see how the 2017 conforming limits for Riverside County compare to the rest of the state? Here’s a list of limits for all counties in California.