Shopping for a home loan within the conforming limits for Orange County? Then you are in the market for a conforming loan. This is one of the most common types of mortgages available in the Greater Los Angeles Area and throughout California.
A conforming home loan is a loan that conforms to guidelines and loan amounts set by Fannie Mae and Freddie Mac. So long as the loan amount you desire does not exceed that cap for Orange County or the county the property you are financing is located in, you are able to apply for a conforming loan.
If you do need a higher loan amount, you can apply for a jumbo loan. The Grand Lending Team of Grand Avenue Realty & Lending can bring you competitive rates on conforming and jumbo mortgages.
To help you figure out whether you can apply for a conforming loan, here are the Orange County conforming loan limits:
Conforming loan limits are lower in many other locations, because housing costs in those areas are also lower. Los Angeles and Orange County are considered “High-Cost” areas and therefore have higher loan limits set by Federal Housing officials.
As with any other type of mortgage, what you qualify for in terms of interest rates and terms will depend on a variety of factors:
A high credit score represents a low risk profile for a borrower. This means that if your credit score is high, you should be eligible for the most competitive rates and terms.
Conversely, you want a low debt-to-income ratio. This demonstrates to lenders that you can afford to add a mortgage onto your monthly payments. The better this ratio, the better the terms and rates you will be quoted.
Conforming loan down payments may range anywhere from 3-20% or more. The minimum will be based on the factors above, but you might consider paying more in order to increase your bargaining power over terms of the mortgage.
Remember, you can only qualify for a conforming loan if the loan value will not exceed the limits shared above. For those which do, a jumbo loan is the appropriate loan option.
Don’t wait to make your dreams of homeownership in OC or Greater Los Angeles come true. Call us now at (949) 202-5332, and we will schedule you for a consultation to discuss your lending needs and goals. We are excited to help you!
Grand Avenue Realty & Lending is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.