Did you know the conforming loan limits have increased?
The new conventional loan limit for both Mono county (where Mammoth Lakes and June Lake are located) and Inyo county (where Bishop is located) is $647,200 (up from $528,250 in 2021). Anything above this amount is considered a jumbo loan. With conventional loans you can do as little as 10% down as a second home. This opens up more options for buyers who may not have as much funds for a down payment, but still want to buy at a higher price point.
This is also very important to note since conforming loans are typically much easier to get through the loan process, especially when dealing with our short term rentals condo complexes in Mammoth Lakes.
What is a conforming loan?
A conforming loan is a mortgage that meets the dollar limits set by the Federal Housing Finance Agency (FHFA) and the funding criteria of Freddie Mac and Fannie Mae. For borrowers with excellent credit, conforming loans are advantageous due to their low interest rates.
Conforming Loan vs. Non-Conforming Loan
Mortgages that exceed the conforming loan limit are classified as nonconforming or jumbo mortgages. Because Fannie Mae and Freddie Mac only buy conforming loans to repackage for the secondary market, the demand for nonconforming loans is much less.
The terms and conditions on nonconforming mortgages can vary widely from lender to lender, but the interest rate and minimum down payment are typically higher because these loans carry greater risk for a lender. Not only is more money involved, but the loan cannot be guaranteed by the government-sponsored entities.
If you are looking for a lender with a proven track record of success in Mammoth Lakes, check out the Preferred Lender resource on our website.