Getting More Bang for Your Buck in 2021 with the Housing Market Changes
We can all agree, we have seen a HUGE influx in home prices over the course of the last two years in most major markets and as a result, the Federal Housing Finance Agency announced that it would raise the allowable borrowed amount for families. Mind you, this announcement was made in December 2020 and came into effect on January 1, 2021. Qualified borrowers can take loans out as high as $548,250 in all but 18 counties – in those 18 counties, it is considered a jumbo loan. Importantly, these loan numbers apply to loans acquired by Freddie Mac and Fannie Mae.
Now, why did these numbers increase? In 2020, the non-conforming loan amount was $510,400. The rise from 2020 to 2021 reflects that home prices that have dramatically risen and the FHFA determines the percentage increase by analyzing “average repeat purchase and refinance data for single-family house mortgages that they have access to across about 400 cities” and median home prices without refinances factored in were actually higher from this 2020 to 2019.
FHA loans are typically used by low- and moderate-income buyers, the national loan limit has also risen for this category becoming $356,262 instead of $331,760.
In other words, if you are in the market to purchase a home, now may be the best time to get more bang for your buck if you’re eligible for an increase in your home loan and interest rates continue to be better than they were in 2018. Give me a call today to discuss your needs and we’ll talk about your preapproval capabilities.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. CrossCountry Mortgage, LLC (“CrossCountry”) does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by CrossCountry.