Jumbo Conforming Loan Limits To Decrease In October 2011
Current jumbo conforming loan limits are $729,750 in the DC Metro area. That’s slated to be reduced to $625,500 as of October 1, 2011.
Need me to break that down into regular words?
Currently, you can borrow money up to $729,750 at a reasonable interest rate, and everything above that amount is called “Jumbo Money” and is subject to a higher interest rate.
As of October 1, that jumbo money will be based on the new level of $625,500 and everything over that will require higher credit scores, higher income levels, and higher interest rates.
The other part of this change is it will now effect how much you qualify for.
Note: (Regular) Conforming Loan Limits will stay at $417,000.