loan limits: $1 Million Conventional Loans? They're here.
- 11/29/22 12:08 PM
Conventional loan limits for 2023 were announced today by FHFA, and while the numbers weren't too surprising, one number that stands out is that the high cost area threshold for conventional loans has exceeded $1 million.
This is important because in many high priced markets, down payment is a major hurdle to potential home buyers - think about it. On a $400,000 home, a 5% down payment is $20k. That same home in a high priced market like the bay area could easily be $1.2 million, and that same 5% down payment is $60,000.
Prior to these loan limit increases, many borrowers were … (1 comments)
loan limits: 2022 Conventional Loan Limits Announced
- 11/30/21 01:25 PM
They're here! Every year around this time the Federal Finance Housing Authority (FHFA) announces loan limits for the next calendar year. These limits are adjusted based off of year over year home appreciation metrics usually noted by 3rd quarter results from appreciation reports.
For 2022, loan limits have followed home prices in increasing by a large margin! The base conforming loan limit has increased by nearly $100,000 to $647,200 nationwide. In high cost areas, loan limits have increased to a staggering $970,800. Yes, this means that nearly $1 million can be borrowed under conventional loan guidelines (aka, 5% down payment!). Loan limits … (4 comments)
Today, Fannie Mae & Freddie Mac released their updated loan limits for 2021. Each year, maximum loan limits on conventional loans are adjusted based on median home values and the overall housing market. For 2021, we're seeing a 7.5% increase to conventional loan limits! The new maximum loan limit nationwide will be $548,250! What does this mean?
Well, conventional loans are the most popular mortgage loan options on the planet, offering low rates, flexible guidelines, and financing options for a wide range of borrowers. BUT, these loans are only available up to a certain loan amount. … (5 comments)
Movin' on up! Much like the Jeffersons, Conventional loan limits are pushing higher in 2019. With loan amounts based on median sales price, this is no surprise considering the high rates of appreciation we've seen in so many markets across the US, and this increase will be a tremendous benefit to people in markets where home prices have outpaced loan allowances.
While FHA, VA, and USDA guidance hasn't been issued yet, it will be soon to follow, and we expect to see increased allowances on those products as well.
Want to know what loan limits increased … (21 comments)
As expected, Fannie Mae & Freddie Mac have announced that conventional loan limits are set to increase as of January 1, 2017. Since rate increases on these programs are tied to median home values, this increase was expected, and is finally some relief for people buying in higher price ranges. While not a drastic change, the increases will be helpful to people buying in higher-end areas of most markets.
For real estate agents, it's important to note that lenders may originate loans based on the new loan limits immediately, however loans with the … (2 comments)
Recently I blogged about the coming conventional loan limit increases planned for 2016. There were plenty of counties in a handful of states that saw improvements in allowable loan amounts, but a lot of people seemed to be wondering why their areas didn't see the same increases, or more.
Particularly here in California, Orange County, the LA market, and the Bay area have seen a ton of home appreciation this year, so it would reason these areas should have seen loan limit increases. Alas, they did not. While some hot markets … (5 comments)
Conventional loan limits for 2023 were announced today by FHFA, and while the numbers weren't too surprising, one number that stands out is that the high cost area threshold for conventional loans has exceeded $1 million. 
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