When you see conforming loan amounts go up, it’s easy to say, who cares? Unfortunately, while homes in the middle part of the country generally have not gone up as much as the coasts, there are a lot of urban areas that need this help to still get a conventional loan. By the conventional loan limit going up to $484,350, there are simply more families that can buy a home under conventional loan guidelines.
Why did I say $509,842? Because with 5% down, or $25,492 +/-, that’s the most common down payment off the total home purchase price of $509,842, so we get to the conforming loan amount limit is then $484,350. So a family previously limited to looking for less, can now still take advantage of conventional mortgage loan rates, terms, and ease of use.
Why did I say more? Because certain “high cost” areas are $764,763 total purchase price (or $726,525 loan limit).
It might be good to note that there are even higher limits for 2-4 unit dwellings. Also, high cost areas are very fickle, so it’s good to know the borders exactly that apply to where you want to buy.
Why did I say now? Because direct lenders can offer these options this year, before 2019! So now is a great time to get started purchasing the home you didn’t think met the requirements for traditional financing. This is a very practical way for more people to qualify for a home mortgage loan with your favorite lender.