A borrower wants to purchase a four-unit property with a conforming loan. If the baseline conforming loan limit for single-family homes is $766,550, what would be the approximate conforming loan limit for this four-unit property?
Correct Answer
C) $1,916,375
Conforming loan limits for four-unit properties are approximately 150% higher than single-family home limits. Using the baseline limit of $766,550 × 2.5 (150% increase) = approximately $1,916,375. The exact multipliers are set by FHFA and may vary slightly, but this represents the typical relationship.
Why This Is the Correct Answer
Conforming loan limits for four-unit properties are approximately 150% higher than single-family home limits. Using the baseline limit of $766,550 × 2.5 (150% increase) = approximately $1,916,375. The exact multipliers are set by FHFA and may vary slightly, but this represents the typical relationship.
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