Why It Just Became Much Easier To Buy a Home
Why It Just Became Much Easier To Buy a House
It's been a long journey for homeownership, but it seems like more people are realizing the benefits of being in control. From feeling secure and stable to having higher equity values on your house as time goes by - these qualities make owning something that will last much longer than just renting an investment worth making!
In recent years we've seen an increase among renters who realize how great this lifestyle can be if you're willing put some effort into going from landlord rent payments every month.
There has been a recent change in the real estate market that will help many buyers achieve their dream of owning property. The FHFA (which handles mortgages by Freddie Mac,Fannie Mae and the Federal Housing Administration) recently announced they are raising loan limits for prospective homeowners beginning next year! This means house hunters can save more money toward down payments or qualify easier when applying because now there are less requirements to meet than before making either investment possible at an affordable price point thanks largely due this new regulation from Washington Dc
"This past week both obstacles faced by homebuyers -the ability to save enough cash towards purchasing costs as well qualifying financially- were mitigated somewhat.
What Is the Difference Between a Conforming Loan and a Non-Conforming Loan?
Investopedia explains the difference in a recent post:
“Conforming loans are the only loans that meet the requirements to be acquired by Fannie Mae and Freddie Mac. Jumbo loans, which exceed the conforming limit, are the most common type of nonconforming loan.”
What Difference Does It Make to Me as a Home Buyer?
The Forbes article also mentions the benefits of conforming loans and why they exist. This type of loan is safer for lenders because if you default on a jumbo, it will hurt them more than anyone else! They charge higher interest rates in order to cover these risks with non-conformities but those same requirements make sure that your debt won't exceed what's affordable by law—so no worries there either.
What Happened Last Week?
FHFA is making it easier than ever to get a house! They've increased Conforming Loan Limits by 12% and you can now buy up in more counties.
Gone are the days when only wealthy people could afford homes, thanks to an increase from $500k-647K with rates as low at 2%. Now even those living paycheck-to -paycheck might be able finally own their first home without putting tons of money down or taking on additional debt.
The Federal Housing Administration (FHA) recently increased its Conforming Loan Limits for 2022, and that means more homeownership opportunities in the near future. With FHA loans being one way to get a home purchased despite not having as much money or credit score needed before!
The housing market is changing and there are now less stringent qualifying standards for buying your first or next home. Plus, mortgage rates may have dipped to affordable levels! Let me connect you with someone who knows what they're doing so we can discuss how these changes will impact them in a positive way.
Lamont "Ben" Orr - Realtor