What New Loan Limits Mean for You
Here’s how changes to loan limits will affect buyers and sellers.
If you’re looking to buy or sell in the area, what does this mean for you? Let’s talk about it.
The conforming loan limit is how much you can borrow for a conventional mortgage. Anything over the limit is considered a jumbo mortgage, and these loans are much stricter in their requirements. The new conforming loan limit in Washington D.C. will be $970,800 for one-unit properties; this is an increase of $150,000, which is a much higher raise than the previous year.
What does this mean for you? If you’re looking to sell and your home is within the new conforming loan limit, you’ll be pleased to know that the pool of buyers just increased. We usually see less demand for properties above the loan limit, so if you were previously just above the limit, you’ll likely see more buyers interested in your home.
The new changes for loan limits are a win-win for buyers and sellers.
Sellers aren’t the only ones with more options. Now buyers can shop for homes within the loan limit with a conventional loan. This means less money down and easier qualifying requirements. Conventional loans also have lower interest rates than jumbo ones, so they’re a better deal all around.
The new changes for loan limits are a win-win for buyers and sellers. The only downside is that the influx of demand could increase home prices even further. If you are looking to take advantage of the new loan limits, I recommend you act fast.
If you have any questions about today’s topic or anything else, please call or email me. I am always willing to help!