We just learned conforming loan limits will increase over $100,000 in Monterey County from $739,450 to $854,450. This is wonderful news for buyers financing purchases and looking for the best possible rates without going into a jumbo loan product.

It gives more flexibility for buyers with lower down payments who want to take advantage of great rates while still dealing with high home values. A couple of years ago a first time buyer could take advantage of putting 5% down on a $550,000 purchase, but as values changed and inventory in that price range dropped, the need for a larger down payment became more critical. Lower down payments mean higher monthly payments, but if the buyer can comfortably afford the mortgage, this increase in conforming loan limits will help buyers overcome the challenges of rising home values and give control over a tangible asset while locking in a 30 year rate. 

This increase also helps buyers looking in larger price ranges who still want to take advantage of the best available financing products. A buyer with 40% down on a $1.2-1.3M home would now potentially be able to increase their buying power by 100k without getting jumbo financing.