New Loan Limits Give Buyers More Spending Power
Both buyers and sellers will start off 2020 with some good news when it comes to mortgages!
Effective January 1st, the Federal Housing Finance Agency increases conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac.
That means buyers will have more spending power when purchasing a home since this action helps them keep pace with rising home prices.
What does that mean for you? It means that your interest rate could be lower based on these higher prices for a higher price point. That’s a good thing, making it easier to borrow at higher price points.
In the DC metro area (considered a high-cost area), the ceiling loan limit for one-unit properties increased from $726,525 to $765,600. For other areas, the standard loan limits increased from $484,350 to $510,400.
If you want to move up to a new home and sell your current one, then this new increase in loan limits opens up more possibilities for you. You’ll have more buyers interested in your home because of their ability to finance.
And if you’re a new buyer, you’ll find more opportunities to buy in certain neighborhoods you thought were off-limits with your budget.
This is a win-win for both buyers and sellers!