C.A.R. has recently learned that in anticipation of the expiration of current conforming loan limits on Sept. 30, 2011, and due to significant changes in market conditions, Wells Fargo will not accept applications for loans using the temporary loan limits ($625,501-$729,750) after Monday, Aug. 15.
The deadline to submit an application with these loan limits and have it considered for a conventional loan is Monday, Aug. 15. After that date, applications for loans of $625,501 or more will be considered for jumbo loans.
Barring Congressional action, the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum. The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.
C.A.R. will continue to provide information as it becomes available.