In January 2024, the baseline conforming loan limit increased. A borrower applied for a loan in December 2023 for $700,000 but didn't close until February 2024. The property is in an area where the limit increased from $690,000 to $750,000. Which loan limit applies?
Correct Answer
C) The limit in effect at closing
Conforming loan limits are determined based on the date of closing, not application. This allows borrowers to benefit from limit increases that occur between application and closing, as established by FHFA guidelines.
Why This Is the Correct Answer
Conforming loan limits are determined based on the date of closing, not application. This allows borrowers to benefit from limit increases that occur between application and closing, as established by FHFA guidelines.
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