Maximum Conforming Mortgage Loan Limits where increased by The Federal Housing Finance Agency (FHFA) from $417,000 to $424,100 for the first time since 2006. In higher cost counties the mortgage loan limit will increase from $625,500 to $636,150.
“The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price,” read the statement from FHFA. With this increase along with rising home prices is an indication that the housing market has returned to pre-recession growth.
With this increase in home loan limits homebuyers have an option of choosing a conventional home loan over jumbo loans which provides more favorable loan terms resulting in real savings to the consumer over the life of the mortgage.
All these changes only have an affect on mortgage loans that are closing on or after January 1, 2017. One advantage our Inlanta Mortgage Team has is that we are a direct mortgage lender with Fannie Mae and Freddie Mac and are able to start taking your loan application and lock your rate today.