A borrower is purchasing a duplex in San Francisco for $1,400,000, planning to live in one unit and rent the other. The loan amount is $1,120,000. Given that the 2024 conforming loan limit for high-cost areas in San Francisco County is $1,149,825, how should this loan be classified?
Correct Answer
C) Conforming loan because the loan amount is below the high-cost area limit
The loan amount of $1,120,000 is below the 2024 high-cost area conforming limit of $1,149,825 for San Francisco County. Conforming status is determined by loan amount, not purchase price, and duplexes are eligible for conforming loans when owner-occupied.
Why This Is the Correct Answer
The loan amount of $1,120,000 is below the 2024 high-cost area conforming limit of $1,149,825 for San Francisco County. Conforming status is determined by loan amount, not purchase price, and duplexes are eligible for conforming loans when owner-occupied.
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