In 2024, a borrower in Alaska is purchasing a single-family home with a loan amount of $850,000. The baseline conforming limit is $766,550, but Alaska has a 50% increase factor. How should this loan be classified?
Correct Answer
B) Conforming loan because Alaska's limit is $1,149,825
Alaska, Hawaii, Guam, and the U.S. Virgin Islands receive a 50% increase to conforming loan limits. Alaska's 2024 limit would be $766,550 × 1.5 = $1,149,825, making the $850,000 loan conforming.
Why This Is the Correct Answer
Alaska, Hawaii, Guam, and the U.S. Virgin Islands receive a 50% increase to conforming loan limits. Alaska's 2024 limit would be $766,550 × 1.5 = $1,149,825, making the $850,000 loan conforming.
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