These limits are for the loans whose interest rates you hear quoted every day in the media by such firms as Ditech. If you buy a house that needs a higher mortgage than this you need a jumbo loan and the interest rates will be higher. Of course you could also combine a conventional mortgage at conventional interest rates with a smaller second loan or a home equity loan of credit at higher interest rates.
For conventional mortgages (those which may be purchased from local lenders by national organizations such as Fannie Mae and Freddie Mac), the loan limits for owner-occupied properties are:
* One-unit properties: $417,000
* Two-unit properties: $533,850
* Three-unit properties: $645,300
* Four-unit properties: $801,950
* For properties in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the loan limits are 50 percent higher.
These limits are adjusted at least yearly or more often.
If you are investing in real estate and are buying an investment property with five units or more you may have to go to private lenders and the interest rates could be considerably higher and the loans more difficult to obtain.
We frequently discuss financing options with our clients and direct them to lenders with great track records.
