MORTGAGE AMOUNTS
The size of a mortgage is expressed as either conforming or non-conforming (also referred to as jumbo). The dollar limits to determine if it is conforming or jumbo are set by the Federal Housing Finance Agency (FHFA). A jumbo loan is one that is larger than the conforming price set by the FHFA. Non conforming (jumbo) loans will have different guidelines than smaller ones. In addition to requiring a higher income level they often set a lower allowable Debt to Income ratio, higher FICO credit scores, and larger amounts of assets in reserve in personal accounts after the closing. The conforming loan limits are reviewed once a year by FHFA but do not have to change. Currently (2025) conforming loan limits in most of the 48 contiguous states and Washington D.C. are $806,500 for a single-family home. The limit is higher for 2-4 family units. High-cost areas such as parts of Alaska, Hawaii, California, CT., and NY currently have a higher conforming limit for 1 -4 family units. Your loan officer will tell you exactly what the limits are in the area that you are planning to make your purchase. Now that you know about the mortgage options let’s become familiar with the people involved in making the mortgage process work.
THOSE INVOLVED IN THE LEND VED IN THE LENDING PROCESS
The first person engaged in the lending process is the mortgage loan officer (MLO or LO). The loan officer is the project coordinator, overseeing the transfer of information between you (the prospective buyer) and their organization’s processing and underwriting departments. The loan officer will be in direct
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