If you read national stories about housing, you already know Santa Barbara is often listed as one of the most expensive places to live. What you probably don’t hear is that our conforming loan limit is lower than many nearby counties where homes actually cost less.

 When you apply for a home loan, the amount you can borrow under standard federal guidelines is capped by what’s called the conforming loan limit. It’s the maximum loan size that can be purchased by Fannie Mae or Freddie Mac, which means it directly affects who qualifies for conventional financing and at what rate. Anything above that limit is considered a jumbo loan and often comes with stricter requirements and higher costs.

 Right now, the conforming loan limit in Santa Barbara County is more than $100,000 lower than Ventura County and about $50,000 lower than San Luis Obispo County. That difference might not jump out at first, but it makes a big impact. It means buyers here on the South Coast, in places like Santa Barbara, Goleta, and Carpinteria, face higher prices with fewer financing options.

 This happens because the federal government bases loan limits on a county’s median home price. Santa Barbara County’s median price includes Santa Maria and Lompoc along with the South Coast. Those cities have lower housing costs, which pulls the overall median down. The result is a countywide limit that doesn’t reflect what homes truly cost here.

 Anyone who’s tried to buy a starter home in Santa Barbara knows the difference. A modest home here can cost twice what it does in parts of North County. Yet buyers across the entire county are held to the same loan limit. That is not fair, and it adds another hurdle in an area already struggling with affordability.

 There is a practical fix. The Federal Housing Finance Agency, which sets these limits, could allow counties like ours to be split for this purpose. Some states already do this when housing markets within a county are drastically different. A “South County” designation for loan limits would give our area a fairer reflection of its real costs.

 The Santa Barbara Association of REALTORS® continues to reach out to our local, state and federal representatives to ask them to push for this change with the FHFA. Housing affordability is already a challenge here. We should not make it harder by using a one-size-fits-all rule that ignores local reality.

 Santa Barbara deserves a loan limit that reflects its true market conditions. It’s not about special treatment. It’s about fair treatment.

 Summer Knight is a Santa Barbara native and top producing Realtor at Sun Coast Real Estate.  Summer has been a member of the Santa Barbara Association of Realtors for over 20 years and currently serves as the President of the Board of Directors. She’s also a Green REALTOR®. Reach Summer at 805-886-1261 or summer.k.knight@gmail.com.