Loan Limits on the Rise
/Dan Hubrich of Mountain View Mortgage is back and this month he’s talking about the new loan limits for conventional home loans.
I have some great news this month! Fannie Mae and Freddie Mac (where 90% + of all mortgages end up) just announced new conforming loan limits for 2022! As home prices climb, it gets harder for most folks to qualify for a traditional “conforming” loan without it turning into a jumbo loan. Jumbo loans are great for the right client BUT generally speaking they are harder to qualify for (more down payment, higher credit, lower debts, more money in reserves, and slightly higher rates, etc. are required). So the higher the conforming loan limits the better! Right now, the conforming loan limit across Utah is $548,250. Some counties are higher but that’s the base amount for all counties. Starting in 2022, that limit will be raised to $625,000. So as long as the new LOAN AMOUNT is lower than $625,000 it will not be considered a jumbo loan and you’ll get the best terms. The purchase price of course can be higher than that, you’d just need to keep the loan amount under the $625,000 mark. And some even better news….we can actually honor these new loan limits RIGHT NOW! If you’ve been in the market for a home in that price range, this could make all the difference! Let me know if you have any questions.