FHFA Raises Conforming Loan Limits for 2020
On November 26, 2019 the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2020.
The maximum loan limit for one-unit properties will be $510,400, an increase from $484,350 in 2019. Release.
The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.
FHFA third quarter 2019 House Price Index (HPI) reported that house prices increased 5.38%, on average, between the third quarters of 2018 and 2019. The baseline maximum conforming loan limit in 2020 will increase by the same percentage.
For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit.
A list of the 2020 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here.
Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.
FHA Single Unit Condo Approvals are Back!
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New single-unit approval process makes it easier for individual condo units to be eligible for FHA-insured financing.
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First-time home buyers, small families and urban dwellers will benefit.
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Improves housing affordability and helps homebuyers obtain a low-down payment mortgage.
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If the non-approved condominium project has 10 or more units, up to 10% of them can be FHA-insured. (To extend eligibility beyond that 10% limit, the entire project would probably have to be approved.)
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Non-approved projects with fewer than 10 units can only have up to two FHA-insured units.
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FHA will only insure up to 50% of the total number of units in an approved condominium project.
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FHA will require that approved condominium projects have a minimum of 50% of the units occupied by owners for most projects.
Lower Interest rates make Financing a Home today cost LESS!
There's good news in the home financing world: Lower interest rates make financing a home today cost less than it did last year, even though prices continue to rise.
Look at the difference in the monthly principal and interest (P&I) payment with a 5% jump in price:
You can see the market offers a renewed opportunity to buy at a lower cost. Of course, no one knows how long current rate trends will last.
If you or a loved one is ready to purchase, please remember that getting a pre-approval for your home loan is a good first step. We are glad to discuss the markets, the process, and the many available financing options.
Are you ready to get started? Contact us today!
FHA Raises Conforming Loan Limits for 2019
FHA Raises Conforming Loan Limits for 2019
On November 27, 2018 the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2019.
The maximum loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018. Release.
The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.
FHFA third quarter 2018 House Price Index (HPI) reported that house prices increased 6.9%, on average, between the third quarters of 2017 and 2018. The baseline maximum conforming loan limit in 2019 will increase by the same percentage.
For areas in which 115% of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit.
A list of the 2019 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here.
Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.