The Federal Housing Finance Authority (FHFA) has increased the amount of money that can be borrowed through a standard home loan.
The Federal Housing Finance Authority (FHFA) has just increased the amount of money that can be borrowed through a standard home loan to more than $500K for the first time ever. In some areas, the limit is even higher.
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 and possibly drop mortgage insurance too.
- Combining (or avoiding) smaller 1st and 2nd mortgages may 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 5.38% to a maximum of $510,400 in most areas.
- The percentage increase is equal to the national appreciation average over the last year.
- This is the 4th year in a row that the FHFA has raised the limit, after a decade of no increases. The limit has risen almost $100K over four years.
- King, Snohomish, and Pierce county High Balance Loan Limit: 741,750.00
- Purchase price with little as 5% down or more = 780,790.00 and borrowers can still stay in FNMA / Freddie Guidelines!