Conventional home loan limits are once again increasing for Fannie Mae and Freddie Mac backed conventional mortgages. The new loan limits are $726,200, up from the current limit of $647,200.
This is great news for many buyers, as it provides additional purchasing power for potential homebuyers.
-With a 5% down payment, a homebuyer can now purchase a home up to a $764,000 sales price, with a conventional loan.
-With a 10% down payment, a homebuyer can now purchase a home up to a $806,000 sales price, with a conventional loan.
-With a 20% down payment, a homebuyer can now purchase a home up to a $907,000 sales price, with a conventional loan.
This is the sixth year in a row that conventional loan limits have increased and is a 12.2% increase from 2022, which is based on data showing house prices have risen that much nationally in the past 12 months.
The Conventional loan is still the most widely used home loan program in the entire U.S. mortgage market and provides stability and unique qualifying features that other home loan programs do not.
This move will continue to allow for more home buyers to use conventional loans, for a new home purchase, without having to look into alternative programs, such as Jumbo or non-conforming financing.
It also presents an opportunity for homeowner’s who have loans just above the current conventional loan limit, to potentially refinance into a conventional loan as well.
As always everyone’s individual situation is unique and it is always best to speak with a licensed lender, such as Strategic Mortgage and explore all available home loan options, for your specific situation.
For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 703-5844 or by emailing: bill@strategicmtgaz.com or online at www.strategicmtgaz.com
Strategic Mortgage, LLC - NMLS#158804- Equal Housing Lender – AZBK#0909514
Vasilios Bill Kamboukos Jr – NMLS#160440
Comments(2)