Q. Why do conforming loan limits adjust?
A. Fannie Mae & Freddie Mac adjust their loan limits to stay in line with the adjusting value of home prices. They recently increased the conforming (non-jumbo) to $510,400.00. FHA typically follows Fannie with the increases.
Q. What does this mean for the buyer?
A. If the buyer is doing a 97% loan it means that they can be looking at a house with a purchase price of $526,185.00, with a 95% loan they can look at homes prices at $537,263.00. The new FHA loan limit for the Atlanta MSA has increased to $401,350.00 which means that a borrower can now go up to a $415,906.00 purchase price.
[bt-button url=https://www.pathpost.com/cheryl/ title=”Connect With Mortgage Banker”][/bt-button]
