According to Fannie Mae and Freddie Mac, the two government sponsored corporations that buy home loans from lenders, the new one family mortgage limit for conventional conforming loans starting January 2018 will go from $424,100 to $453,100. As a point of reference, the loan limits held steady for about a decade at $417,000 until the beginning of last year. It is an indication of the increased value of today’s real estate market.
What this means for you:
If you are looking to purchase a home, that is the maximum amount you can borrow before the mortgage is considered a High Balance or Jumbo mortgage and higher rates kick in. This gives you an extra $29,000 to borrow. For some, it will give them extra buying power and a lower monthly payment for the extra amount of money.
FHA has increased their maximum mortgage in New York from $636,150 to $679,650 for government insured mortgages. Depending on your credit score, you can put as little as 3 percent down to purchase a home using one of these programs.
Lenders have generally relaxed their credit score and debt to income requirements from a few years ago. With rates expected to increase in 2018, if you are thinking of purchasing or refinancing to a lower rate or to consolidate your debt, now is the perfect time to do so.
Give me a call to discuss your personal situation.
Lester Bleich, New York State Licensed Mortgage Loan Originator 