Loan Limits Increased from $453,100 to $484,350
Florida home buyers and current homeowners will now be able to finance even more house for less money, thanks to the increase in Fannie Mae and Freddie Mac’s base loan limits from $453,100 to $484,350 in 2019. The great news was just recently announced by the Federal Housing Finance Agency, citing a 6.9% rise in the average US home value from the 3rd quarter of 2017 to the 3rd quarter of 2018, as the reason behind the increase.
The new loan limit of $484,350 applies to all counties in the state of Florida except Monroe County, which was deemed as a high-cost area and granted a higher conforming limit of $529,000.
More detailed information directly from the FHFA available here.
What exactly does this mean for those looking to buy or refinance a home in Florida?
Previously, if you wanted to borrow more than $453,100 for your Florida home purchase or refinance, you would mostly likely have had to obtain a ‘jumbo’ mortgage because the loan amount exceeded the conforming loan limits. A jumbo mortgage is classified as mortgage that exceeds the conforming loan limit, and typically carries a higher interest rate and fees, so you would’ve ended up paying more for your home each month. In addition, most jumbo mortgages require higher credit scores and at least 5 or 10% of the purchase price as a down payment, whereas mortgages below the conforming loan limit only require as little as 3% down.
Not only will this positively impact those obtaining a conventional mortgage, but current veteran homeowners and potential home buyers will also be joining the party, as all VA mortgages will benefit from the higher loan limits as well.
The Bottom Line
With these new changes, it is now possible to purchase a $499,000 home in Florida with as low as a 620 credit score and less than $15,000 as a down payment, something previously unheard of.
Although the new conforming loan limits are technically for 2019, we at Innovative Mortgage are honoring them for all new loan applications, effective immediately!
So, if you or someone you know would like to benefit from these new loan limits right away, please get in touch with us directly and we’d be happy to help!