The Federal Housing Finance Agency (FHFA) has just increased the amount of money that can be borrowed through a standard home loan to more than $647K. In some areas, the limit is even higher. The new limits will take effect in 2022.
This is great news for buyers and owners alike.
- Buyers may be able to borrow more money through a conventional, typically lower-rate loan.
- Owners may be able to refinance their “jumbo” loan to a lower rate conforming loan and possibly drop mortgage insurance, too.
- Combining (or avoiding) smaller 1st and 2nd mortgages may now be an option.
- The increase reaffirms the health of the housing market and your decision to invest in a home.
Here are the specifics about the change:
- The standard loan limit, also known as the conforming loan limit, rose by 18% to a maximum of $647,200 in most areas.
- The percentage increase is equal to the national appreciation average over the last year.
- This is the 6th year in a row that the FHFA has raised the limit, after a decade of no increases. The limit has risen more than $230K over six years.
Reach out to your Highlands Loan Officer today to learn more!
Related Resources
Highlands Gives Back: Volunteering at the North Texas Food Bank
At Highlands Residential Mortgage, giving back is part of our culture. It’s built into who ...
Celebrating 15 Years of Highlands Residential Mortgage
Wow—15 years! This March, we’re celebrating an amazing milestone here at Highlands Residential M...
Homeowner’s Guide to Tax Season: What Documents You Need
Tax season is in full swing, and the April 15th deadline is just around the corner! Getting a head s...
