Today we have some pretty big news for you: Recently, Fannie Mae and Freddie Mac, the largest backers of mortgagesin the entire country, have raised their loan limits in Arizona to over $510,000.
This is huge considering that from 2006 to 2016, conventional loan limits hardly even budged. Since 2016, the loan limit we’re referencing has gone up by almost $100,000! What does that mean for you?
Well, for example, if you wanted a $600,000 home, you would need a jumbo mortgage (unless, of course, you had an incredibly large down payment). Now, with the new loan limits, you can receive something called a conforming loan—something that works within Fannie Mae and Freddie Mac guidelines—all the way up to $510,000.
This allows you to have lower down payment options, like 5% down. A common misconception surrounding conventional loans is that they require 20% down. That’s not always the case; there are conventional loan products on the market now that only need 5% or 10%.
So if you’re thinking about buying in 2020, just know that you have a lot more financing options than you’ve ever had before.
If you have any questions about these new limits or what they may enable you to do, don’t hesitate to reach out to us. We’re always happy to help.
