30 Nov Holly Walther Lending Team: Fun Fact Friday – Conforming Loan Limits
Holly: Hey guys, happy Friday. Hope you had a great Thanksgiving. I know most of you are taking a break today, but we have got some fantastic news. So, Fannie Mae and Freddie Mac announced on Tuesday prior to Thanksgiving that we are going to see a seven and a half percent increase and conforming loan limits. So what does that mean to you? Well, if you’re in Metro Atlanta, that means your conforming loan amount is now as high as $548,250.
So just to give you some quick numbers, and if you look it down below this video, you can see it bullet pointed, but what that means you can buy a house up to $565,200 with a 3% down payment. Talk about leverage. If you can, up that down payment to 5%, you can increase that sales price to $577,015. If you’ve got 10%, well, now your sales price just moved up to $609,166. And if you have a 15% down payment, you can buy a price up to $645,000 with a 15% down payment and get that great conforming loan. And last but not least, if you have 20%, your sales price can be $685,312.
Guys. This is a game changer. Conforming loan limits are a less restrictive underwrite. They’re going to have easier credit score requirements, less reserve requirements. It is a great loan. And historically it’s really prevented a lot of people from getting into these higher price points, because lack of down payment, lack of reserves, lack of employment history, because those jumbo guidelines were just too restrictive. So happy Friday, happy holidays. Call us if you have any questions and we will see you next week!