Higher conforming loan limits can offer several advantages for borrowers and the housing market in general:

1. Access to More Expensive Homes: Higher conforming loan limits allow borrowers to purchase more expensive homes without the need for high balance or jumbo loans. This can be especially important in high-cost housing markets where even modest homes may exceed standard loan limits.
2. Lower Interest Rates: Conforming loans typically come with lower interest rates compared to high balance or jumbo loans. Higher loan limits mean that more borrowers can access these lower rates, potentially saving them money over the life of their loans.
3. Easier Qualification: Conforming loans are often easier to qualify for compared to jumbo loans, which tend to have stricter credit and income requirements. Higher loan limits mean that more borrowers can qualify for standard conforming loans.
4. More Liquid Real Estate Market: When more buyers can qualify for conforming loans, it can help stimulate demand in the housing market, leading to increased buying and selling activity. This can be especially beneficial in areas with high-priced homes.
5. Faster Approval and Closing: Conforming loans may be processed more quickly and smoothly than jumbo loans, which can involve more complex underwriting and approval processes. Faster approvals and closings can benefit both buyers and sellers.
6. Market Stability: In high-cost areas, higher conforming loan limits can contribute to market stability by enabling more buyers to participate. This can help prevent sharp price declines in these markets.

It’s important to note that conforming loan limits can vary by location but in San Diego the conforming loan limit is now $750K. Borrowers should always check the most up-to-date conforming loan limits for their specific location before applying for a mortgage. MY team and I are here to help answer all your questions or concerns.