Wednesday, March 28, 2012

Did you know that conforming loan limits are higher on multi-residential properties?


The Office of Federal Housing Enterprise Oversight (OFHEO) set the criteria on what constitutes a conforming loan limit. Lenders offer the lowest interest rates on conforming loans because they can be later sold to Fannie Mae or Freddie Mac. At the time of this writing the FHA loan limit in California is $625,000 for single family and condominium home. Loans above this amount are referred to as jumbo loans and have a higher interest rate. However, small multi-residential properties have higher limits. The FHA loan limit, at the time of this writing, for duplexes is $800,775, for triplexes is $967,950 and for four-plexes is $1,202,925.

If you are thinking about purchasing a multi-residential income property and would like to discuss loan options, I will be happy to refer you to a knowledgeable and trustworthy mortgage consultant. 

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