Straight Talk About Real Estate

Conforming loan limits are:

one unit: $359,650
two units: $460,400
three units: $556,500
four units: $691,600

This means when you are financing a property, in order to obtain conforming loan rates, your loan amount cannot exceed the above.

If your loan amount exceeds the limits, your loan will go into the “nonconforming” or “jumbo” catagory, which means your interest rates will probably be higher.

Any property over four units has to be financed with a commercial loan.

So when choosing a property to buy, first check out what kind of financing you can get on it. It will make a big difference in your cashflow.