• For the first time in over a decade, federal regulators have increased the amount of money potential home buyers can borrow by $7,000 while remaining within more flexible mortgage terms.
• FHA follows suit with a more than $4,000 increase to the popular low down payment program. Major Arizona counties will see even larger increase of over $8,000.
• Real estate experts predict the changes are enough that it may help many home buyers who are struggling to afford a home. Areas with low inventory and rising prices should see positive impact as well according to experts.
- - - For the first time since 2006, the Federal Housing Finance Agency has raised the maximum loan amount on loans that qualify for purchase by Fannie Mae and Freddie Mac. These conventional or "conforming" loans are considered less risky for lenders, allowing for lower down payments and often lower interest rates for qualified buyers.
The current conventional loan limit is $417,000. Loans exceeding that limit are considered "jumbo" mortgages and typically require larger down payments and more stringent underwriting. The current limit to stay out of "jumbo" territory is set to increase by $7,000 to just over $424,000 starting January 1, 2017.
As expected, the Federal Housing Administration (FHA) followed suit with an increase to its national loan limit, rising to $275,665 from $271,050. Additionally, Maricopa and Pinal counties in Arizona will see a greater increase to $279,450 from $271,050. Increases for the popular FHA low down payment loan go into effect January 1, 2017.
With a reported 6% increase in home prices, many real estate experts predict the changes will have a positive impact on the number of home buyers who can now afford a home by staying within the lower down payment loan programs.
As industry experts look into the new year, Arizona is expected to be the hottest real estate market in the country as reported by Realtor.com. The limit increases on conventional and FHA products may give Arizona home buyers the buying power they need to make a purchase in 2017. - - -
For more information on conventional and FHA Loan programs or to apply, contact a Fairway Independent Mortgage Branch near you to speak with an Arizona licensed loan officer.
*This article is not an offer to enter into an agreement. Not all customers qualify for the aforementioned programs. Fairway Independent Mortgage Corporation is an approved lender for the loan programs listed in this article. We do not represent any mentioned entities outside of loan origination.
About Fairway Independent Mortgage Corporation
Founded in 1996 by CEO Steve Jacobson, Fairway Independent Mortgage Corporation is a Top 10 ranked national mortgage lender. The company has more than 250 locations including several Arizona Mortgage Branches. At Fairway, customer service is a way of life. At Fairway speed of response is the goal, with some of the fastest turn times in the industry. The goal is to act as a trusted advisor, providing highly personalized service and helping through every step of the loan process. It’s all designed to exceed expectations, guarantee satisfaction and earn trust. For more information on Fairway Mortgage Arizona, please visit our website at www.FairwayArizona.com.
**Copyright©2016 Fairway Independent Mortgage Corporation. NMLS#2289. 4801 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Lender. AZ License #BK-0904162.