Several factors determine your rate such as; credit score, down payment, type of property, type of loan, type of occupancy, loan amount and county you live in or are looking to purchase. In this blog, I will just concentrate on the loan amounts as they relate to rates.
There are basically two categories of loans that will determine your rate and loan program:
Conforming Loan: Loan amounts not exceeding $510,400 for Single Family Residence.
High Balance Loan: Loan amounts greater than $510,400, not exceeding $765,600 for Single Family Residence.
A loan amount exceeding $765,600 for Single Family Residence is called a Jumbo loan which is a totally different category and has its own sets of rules.
There are 4 types of properties for residential loans - SFR, 2 Units, 3 Units, and 4 Units. The amount of loan limit is increased according to the number of units. Below is a table of the 2020 Loan Limits for LA and Orange Counties:
| LOAN LIMITS FOR LOS ANGELES COUNTY & ORANGE COUNTY | ||
| Property Type | Conforming | High Balance |
| SFR | 510,400 | 765.600 |
| 2 Units | 653,550 | 980,325 |
| 3 Units | 789,950 | 1,184,925 |
| 4 Units | 981,700 | 1,473,550 |
These loan limits apply to Conventional, FHA and VA loans. So when rate shopping, remember Conforming Loan Rates and Pricing are lower than High Balance Loan Rates and Pricing.
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