The most common concern that you have begun looking at loans is the amount of money that you will be able to get with your loan.
The amount of money that can really affect what you are able to get and where you will be living.
In order to help you get a better idea, we’re going to be going over the loan limit so that you can understand what the piggyback loan can get you in San Diego.
It is especially important information for you to know as this loan type is a little bit different than other loan types out there with 2 loans working together to make the main loan.
If you find yourself interested in learning more, then you’ll want to check out the main article about the loan, the pros and cons this loan type, and the answers to some of the most common questions about the piggyback loan.
In addition, you might not be sure after reading this article that the piggyback loan type will be good for you, but I have a list of reasons why the loan type might be perfect for you and your situation.
If after reading all of this information you are interested in getting started with this loan type, you can always contact me and I will help you get started on not only getting the loan you need but looking for the home you want as well.
Here's a quick rundown of our list:
The Limits for the 80%
Because the structure of this loan is a little unusual, you will see that the loan limit really mostly is affecting the 80% part of the loan.
The other 20% is split evenly between the down payment and a home equity line of credit.
The limit for the main loan will be right around $424,100, which is a common loan limit that you will see with other loans.
This will be an easy number to work with, even though it will be on the low end for homes in San Diego.
However, even though this is the limit for the main portion of the loan, you’re not going to just have that limit to work with.
There is another 20% that you will be able to work with.
This really expands the number of houses that you are going to be able to purchase.
The best part about this loan limit for this section is that you don’t have to worry about the down payment in this section.
That down payment is part of the 20%.
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What About the Other 20%?
When you’ve heard about the loan limit for the main part of the loan, you may wonder how it plays into the rest of the loan.
To put it simply, you’ll be able to get a little bit more from the loan.
You’ll be able to get enough to cover most of the cost of the loan on the home equity line of credit.
The remaining amount of the cost of the home will be on you and will typically not be too much as long as you have budgeted correctly.
If you’re using the full $424,100 for the main part of the loan, then the 10% that is covered by the home equity line of credit will be right around $42,410.
In addition to that, you will be able to add the last 10% to the loan amount.
Even though the last bit isn’t part of the loan and comes out of your pocket, it is nice to have something a little bit more added to the loan so that you are going to be able to get something reasonable.
This will allow you to get a lot closer to the value of the average home in San Diego, which means that you’ll really be able to get set up in a home that fits you.
What Does the Limit Mean for You?
You will have a guaranteed $424,100 that you will be able to get through the loan, but you will be able to adjust your loan to work with the more average prices in San Diego.
The home equity line of credit will cover much of the rest of the loan and you will only have to cover the 10% of the loan that isn’t covered by loans.
In San Diego, this will be an especially nice option because the conventional loan limit of $424,100 doesn’t cover the amount that many homes in San Diego go for.
There are loan types that have lower down payments that are limited by the $424,100 loan limit.
Elsewhere in the country, that loan limit does well, but in San Diego, you will definitely need something a little bit larger in order to get a home that is going to better fit you.
This loan type helps solve that problem as well as give you a good advantage in the future as you will have a home equity line of credit ready for you.
Finding a home that fits your lifestyle while also getting a loan that doesn’t just hurt you but helps you in the future is a great way to get set up in San Diego.
If you’re struggling to find a home that fits your budget, then you might want to take a look at my website where I have all sorts of homes for all sorts of budgets.
If you find yourself interested in learning more, then you’ll want to check out our main article, the pros and cons about the loan, the answers to the most common questions about this loan type, 5 reasons why, and more information about the loan limits that are available with this loan.
What do you think?
I would love to hear your comments below - or cal/text me at (760) 297-4539.
Your Piggyback Insider,
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