Here’s how much loan limits have been increased and what this means for homebuyers.
New loan limits are affecting homebuyers. As you may have heard, loan limits have been increased. To clarify, any loan obtained below its limit is a regular conforming loan; any loan obtained above its limit is a jumbo loan. Increased loan limits mean more buying power for buyers. Here are the exact limits for different types of housing:
- Single-family homes: $765,000
- 2-unit homes: $980,000
- 3-unit homes: $1,184,000
- 4-unit homes: $1,472,000
"As you may have heard, loan limits have been increased."
You can get a better interest rate and a lower cost for all loans under these amounts for these properties. Conforming loans can be sold on the market, which makes them more desirable than jumbo loans. Jumbo loans can’t be sold, which makes them more expensive.
FHA reverse mortgages and HELOCs have been increased as well, which opens up more possibilities to draw money from a home. The VA has completely removed the limit for their loan, so VA buyers can buy with 100% financing with no limit. Previously, VA buyers could only use 100% financing up to a certain amount. If they purchased above that amount, they had to pay the down payment.
I know this is a bit of a tricky subject, so if you have any questions about it, don’t hesitate to call or email me. I’d be happy to help.