2017 has new Loan Limits!
For the first time in 10 years, the Federal Housing Finance Agency just announced it will be raising the maximum size of conforming loans starting in 2017.
In English please?
A conforming loan is the most common type of loan for residential home purchases. These loans are typically the friendliest loans for buyers and carry the best interest rates and have the lowest requirements. When you borrow higher than the current threshold of $417,00, you must obtain a jumbo loan which includes stricter guidelines, and often higher interest rates.
Starting in 2017, a standard conforming loan allow buyers to borrow up to $424,100. While it doesn’t seem like a big increase from $417,000, it’s a big step to re-enforce a recovered housing market and to support the increased cost of housing over the last several years.
For folk’s home shopping in the $500k-$600k price range who need financing, this might just give you a little extra wiggle room to help get you into a new home!