It has been recently announced that the Federal Housing Administration (FHA) will be increasing loan limits in most areas of the country for 2019. If you’re not familiar with loan limits or the FHA, we’ll be breaking these latest reports down for you! If you’re looking to receive a loan in the near future to purchase your next home, you’ll want to read on!
Why is there an increase in loan limits?
In high-cost areas around the United States, buyers will be seeing the FHA’s loan limit ceiling increasing from $679,650 to $726,525. The reason for this increase is due to the FHA stating increases in median housing prices. Thus the conventional mortgage loan limits for 2019 will see an increase. As prices are rising, the demand for larger loans has not been overlooked.
This is good news for buyers who need that extra loan amount in order to qualify for the purchase of their new home. In addition, the loan limits increase will be beneficial to sellers as well, since potential buyers will have greater access to capital.
What else will these increases effect?
In 3,053 U.S. counties, loan seekers will see the loan limits rise. However, in 181 counties, the FHA loan limits will remain the same. Odds are that your area will see an increase if real estate prices have steadily increased. But you will have to check with a professional in your area to be sure. Furthermore, the FHA will increase the cap for reverse mortgages at the same rate. So there will be increases all around!
What does this all mean for you?
The real estate market and loan process can all be a little confusing to anyone, especially for first time buyers. If you’re someone who wants to take advantage of increased loan limits for the future purchase of a home, it’s best to partner with a professional Realtor. They will be able to help point you in the right direction and find a home that you qualify for.
2019 hopes to bring in new buyers and sellers with these FHA increases! Contact a professional in your area today to learn more!
If you’re looking to buy or sell in the Apopka area, contact the award winning Michelle Chase Team. With extensive experience and plenty of services to offer, you’re sure to be in great hands during your real estate journey!