Focus On Financing

2018 San Bernardino & Riverside FHA, VA and Conforming Loan Limits

It’s about time! I’m happy to report that the 2018 FHA, VA and Conventional Conforming loan limits have increased once again. This occurred because each year the governing agencies get together and review the area median incomes and area median home prices and update their loan limits for all counties in California. accordingly.

2018 Conforming Loan Limit in San Bernardino & Riverside County

The term ‘Conforming’ is often used to refer to Conventional loans that are underwritten to Fannie Mae and Freddie Mac.

2018 San Bernardino and Riverside County Conforming loan limit is now $453,100. An increase of $29,000.

This basically means that in order for Fannie Mae and Freddie Mac to acquire a loan, the loan amount may not exceed $453,100. If the loan amount does exceed the conforming loan limit there are still options which are as follows:

  1. Secure a Jumbo or Non-Conforming loan
  2. Secure a piggy-back loan which consist of splitting the loan amounts into two loans. For instance, the first mortgage would be based on a conforming 1st trust deed at $453,100 and a 2nd loan for the balance exceeding that amount. This is also known or referred to as a 80/10/10 or 80/15/5

2018 FHA Loan Limit in San Bernardino & Riverside County

The Federal Housing Administration (FHA) sets a floor and ceiling loan limit for each county in California.

2018 FHA loan limit in San Bernardino & Riverside County is now $405,950. An increase of $26,450. 

To put this into perspective, you were to put the minimum down of 3.5% on an FHA loan, the max sales price you’ll be able to obtain is about $420,500.

If you would like to purchase a home that is higher than $420,500 you would need to have the difference in price to put down.  You can also inquire about a conventional loan with a 3% down payment requirement or even a 1% with special requirements.

2018 VA Loan Limit in San Bernardino & Riverside County

Although the the Dept. of Veteran Affairs (VA) technically doesn’t have a maximum loan limit, the VA loan establishes a limit to determine how much of a down payment the Veteran will need when exceeding the limit.

2018 San Bernardino & Riverside County VA loan limit is $453,100

In order to finance your home without a down payment the loan amount must be $453,100 or lower. Keep in mind that Veterans can still secure a VA loan (with no monthly mortgage insurance) that exceeds $453,100 with the 25% rule. This means that the down payment required will be based on 25% of the difference between the loan limit and the sales price.

For example: If the county VA loan limit is $453,100, and the Veteran is buying a $500,000 home, they’ll need to come in with 25% of the difference between $453,100 and $500,000.  So the VA loan down payment requirement would be $11,725….assuming the Veteran has full entitlement.

It’s Essential to Work with A Creative Loan Advisor

Working with a lender that is creative is key to obtaining the best program for your needs. A creative lender reviews your unique situation and thinks out of the box when looking for the program that fits your needs. Once a list of programs are found and presented, you’ll receive unlimited advice and transparency in the figures to make sure you make the best possible decision.

Call me at 951-662-3389 or contact me here to discuss your scenario, get an estimate, or simply ask a question.

December 21, 2017 by · Leave a Comment

About Steve

Steve is an experienced Sr. Loan Officer & Mortgage Planner located in Rancho Cucamonga and serving the Inland Empire and surrounding areas. Steve prides himself at being transparent with all his clients using sophisticated tools and concepts to make sure the right program is chosen. Call Steve Chavarria at 951-662-3389.

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