Found your dream home, but worried the price might put you out of the range for a conventional loan? There is good news for borrowers who want a higher value property but don’t want the restrictions of financing with a jumbo loan.
For 2022, the Federal Housing Finance Agency (FHFA) raised the conventional loan limit for a single-family home from $548,250 to $647,200 – which is nearly $100,000 more than the 2021 cap. The adjustment comes after house prices increased 18.05 percent on average between the third quarters of 2020 and 2021.
What does this mean?
More buying power for homebuyers who can now get a conventional mortgage to purchase a home for up to $647,200. Before the increase, a home loan of that size would have typically required a jumbo mortgage. But jumbo loans come with higher interest rates and down payments, and some hefty qualifications, including:
Near-excellent credit score
Large cash reserves
With a conforming loan, buyers looking for a higher value home can enjoy benefits like:
Lower down payment options
Lower monthly payments
More flexible credit score requirements
More options including fixed-rate or adjustable-rate mortgages
Whether you are interested in financing your dream home with a conventional mortgage, or if you already have a jumbo loan but think refinancing to a conforming loan might make sense, use the buttons below to get in touch with us.
*Rates and guidelines subject to change.
Call us today: (888) 379-0303
Four Landmark Sq. Suite 300
Stamford, CT 06901