2020 Standard and Jumbo Conforming loan limits

Case by case effective immediately. Some seller/servicers are closing these already, others are not.

What impact will you see with these higher limits? For purchase and refinances, some better priced Bank Portfolio loans will no longer be available. Banks will not fund Standard Conforming loan limit mortgages (anything sub $510,400) using Bank Portfolio products. It's often the case that a Bank Portfolio loan will have a .25 or better rate spread over Conforming products. Loan Level Price Adjustments (LLPA's) are lower with Bank Portfolio loans compared to Conforming Loans. On the plus side, Conforming Underwriting, post closing cash reserves, and Debt To Income tolerances are better with FNMA/FHLMC loans than Bank Portfolio loans.


Standard Conforming (Nationwide) $510,400 (1 Unit)

OC and LA County Jumbo Conforming: $765,600
SD County Jumbo Conforming: $701,500
Riverside, SB do not have a jumbo conforming loan limit above the national standard conforming limit.

Unit Standard Conforming - $510,400
2 Unit Standard Conforming - $653,550
3 Unit Standard Conforming - $789,950
4 Unit Standard Conforming - $981,700

OC / LA
1 Unit Jumbo Conforming - $765,600
2 Unit Jumbo Conforming - $980,325
3 Unit Jumbo Conforming - $1,184,925
4 Unit Jumbo Conforming - $1,472,550

My .02 c

What's the max a person can add to the loan and not have it considered a "cash-out" refi?  If someone is near the $510k limit, it sounds like it would make sense to get the loan over $510k to get the .25 better portfolio product..

Generally speaking, after payoff of the principal balance and any closing costs, $1.00 over an "incidental" cash limit of $2,000 makes the loan a "Cash Out Refi". Some lenders have a $1,000 limit, so check with your funding lender before deploying this strategy.

My .02c