Homebuyers Have More Purchasing Power With an Increase in County Loan Limits
Jan 28, 2019
Despite the topsy-turvy world of today’s housing market, there is
some good news for the new year. Beginning January 1, 2019, the Federal Housing
Finance Agency (FHFA) increased its county loan limits for mortgages sold to Government-Sponsored
Throughout most of the U.S., the FHFA raised the maximum
conforming baseline loan limit for a one-unit property by $31,000 to $484,350
from $453,000. In most high-cost areas (think of
Marin County, CA or Fairfax County, VA) the new ceiling loan limit for one-unit
properties is now $726,525 – or 150 percent of the new baseline limit.
If you are a veteran, the Veteran
Administration’s 2019 loan limits are the same as FHFA’s.
what does this all mean for your homebuying experience?
·Keeping Pace: Home
prices are expected to continue rising in 2019, although not at the frenetic
pace of previous years. With higher conforming loan limits, borrowers can keep up with
the increases without being priced out of the market.
·More Inventory: Borrowers
interested in obtaining a conforming loan for their home purchase in 2019 may
have more properties to choose from, compared to what was available in 2018
under lower loan limit restrictions.
·More Purchasing Power: The
latest real estate industry reports show that there is a higher percentage of
sellers reducing their prices these days. Bidding wars — once common in major
real estate markets — are now becoming more of a rarity; therefore, homebuyers
have more negotiating leverage with these increased county limits in place.
Although most areas experienced the 2019 FHFA county limit increase this year, there are 47 counties in the U.S. that did not see a change. Check with your Primary Residential Mortgage,
Inc. Loan Originator to see what the county loan limits are in your area.
If you're ready to take the next step, work with a team that can provide the personal attention you deserve. Our mortgage company has helped over 200,000 borrowers fulfill their dream of home ownership. We'd love to help you too!