2019 is going to bring exciting new opportunities for homebuyers looking to take advantage of an FHA or Conventional loan as the new loan limited have been increased on both Fannie Mae (www.fanniemae.com) and Freddie Macs' (www.freddiemac.com) “conforming” loan products. Here are the new limits:
For Fannie Mae and Freddie Macs' Conventional Loan Product, the new loan limit is $484,350, which is an increase from $453,100. Now, for any Conventional loan that is over the loan limit of $484,350, it will be considered a non-conforming or “jumbo” loan and will not qualify.
Great news for Veterans. This change also means that VA (Veterans Administration) loans are now available to veterans and active-duty service members up to purchase prices of $484,350 with no down payment requirement. There is no loan limit for VA loans but, if the purchase price is over $484,350, the borrower will have to make a down payment of at least 25% of the difference between the purchase price and $484,350. Example: a $550,000 purchase price would require a down payment of only $16,413, which is calculated as 25% of the difference between $550,000 & $484,350.
In regards to FHA loans, they will be capped at 65% of the above-noted conforming limit, so the FHA limit will now be $314,827 in most areas. This is an increase from $294,515. Assuming a buyer makes only the 3.5% minimum down payment, this would make the maximum purchase price $326,245…however, a borrower can obtain an FHA loan for any home. The loan amount is just capped at $314,827. Example: a borrower had a foreclosure 4 years ago and wants to buy a $500,000 home. FHA only requires a 3-year waiting period after a foreclosure, whereas Fannie Mae/Freddie Mac guidelines require a 7-year wait. This borrower would qualify for an FHA loan on the $500,000 home but he/she would need to make a down payment of $185,173 since the loan amount is capped at $314,827.
If you or anyone you know is looking to Sell or Buy a home anywhere in Apopka, Orlando or the Central Florida area, please follow the links below for either an INSTANT Home Value & Market report or a FREE MLS Search of All Homes For Sale on the local MLS System. For more information or a no-obligation consultation, contact Joe Bornstein, Broker, Rock Springs Realty, Cell# 407-252-8092 or Toll Free# 877-333-2811 or joe@rockspringsrealty.com
Follow this link to do a FREE Search of All Homes For Sale On the MLS:
https://www.rockspringsrealty.com/search/advanced_search
Curious to what your home is worth? Click this link for an INSTANT Home Value & Local Market Report:
https://www.rockspringsrealty.com/cma/property-valuation
http://www.rockspringsrealty.com
http://www.bestcentralfloridaproperties.com
http://www.sellyourhomeinapopka.com
http://www.sellyourhomeinorlando.com
