Conforming, Confumbo and Jumo Loans Explained
Ephraim Schwartz- Partner, Mortgage Consultant CMPS
O’Dette Mortgage Group
530-582-3345 (Tahoe Office) * 11209 Brockway Rd. #304, Truckee, CA 96161
415-931-2129 (San Francisco Office) * 1842 Union St., San Francisco, CA 94123
Following up with guidelines about conforming loan limits in writing.
I know this is more convoluted than ever, so hopefully this helps. I am scripting 2 below for both Nevada & Placer County
NEVADA COUNTY
There are essentially 3 buckets of loan types now: conforming, jumbo….and what I like to call “confumbo”.
CONFORMING: The true conforming is still $417,000, nationwide.
CONFUMBO: This is where it gets convoluted, so I’ll give you the short & sweet bottom line, and then a more detailed explanation. For 2nd home buyers, unless they are putting >40% down payment, the limit is $477,250 in Nevada County. This is geographic specific.
Explanation:
- Confumbo limits were introduced in 2008, at that time the limit for Nevada county was $562,500, but because it was intended for primary residences, the down payment requirement for 2nd home/investment properties was 40%.
- Jan 1st 2009 the confumbo limit in Nevada county dropped to $477,250…the good news was that the steep down payment requirements for 2nd home/investment properties went away. These we are now referring to as the “2009 PERMANENT LIMITS”.
- When the stimulus package passed, it reinstated the 2008 limits ($562,500 for Nevada). This did NOT eliminate the 2009 limits/guidelines, but temporarily brought back the 2008 limits, which we are referring to as the “2008 REINSTATED LIMITS”.
- Both programs/guidelines are currently available: the “2009 permanent limits” & the “2008 reinstated limits”. For 2nd home purchases, the 2009 permanent limits can be done with as little as 10% down.
Bottom line: The confumbo limit is 2 different numbers, and for 2nd home owners, it depends on down payment.
JUMBO: No change.
I know this is borderline ridiculous and a lot to keep up with. I hope this is helpful. That’s why Teresa and I are here part of your team to help! I’ve attached 2 documents with both limits for all counties for your reference.
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PLACER COUNTY
There are essentially 3 buckets of loan types now: conforming, jumbo….and what I like to call “confumbo”.
CONFORMING: The true conforming is still $417,000, nationwide.
CONFUMBO: This is where it gets convoluted, so I’ll give you the short & sweet bottom line, and then a more detailed explanation. For 2nd home buyers, unless they are putting >40% down payment, the limit is $474,950 in Placer County. This is geographic specific.
Explanation:
- Confumbo limits were introduced in 2008, at that time the limit for Placer county was $580,000, but because it was intended for primary residences, the down payment requirement for 2nd home/investment properties was 40%.
- Jan 1st 2009 the confumbo limit in Placer county dropped to $474,950…the good news was that the steep down payment requirements for 2nd home/investment properties went away. These we are now referring to as the “2009 PERMANENT LIMITS”.
- When the stimulus package passed, it reinstated the 2008 limits ($580,000 for Placer). This did NOT eliminate the 2009 limits/guidelines, but temporarily brought back the 2008 limits, which we are referring to as the “2008 REINSTATED LIMITS”.
- Both programs/guidelines are currently available: the “2009 permanent limits” & the “2008 reinstated limits”. For 2nd home purchases, the 2009 permanent limits can be done with as little as 10% down.
Bottom line: The confumbo limit is 2 different numbers, and for 2nd home owners, it depends on down payment.
I know this is borderline ridiculous and a lot to keep up with. I hope this is helpful. That’s why Teresa and I are here part of your team to help! I’ve attached 2 documents with both limits for all counties for your reference.
