24 Nov The Bibel Team: New Loan Programs
Eric: Hey everyone. Eric Bible with the Bible team at NEO Home Loans. I wanted to get a quick update out to you in regards to loan limits and the pending 2022 increase.
It’s of that time of year again. Every year, fourth quarter, FHFA federal housing finance agency comes out with their direction around where loan limits will go into the new year. We get a new benchmark conforming loan limit, both standard conforming and super conforming high balance for higher cost carrier. Well, we’re already starting to see some lenders kind of jump the gun and kind of without direction of FHFA increase a loan limit. We’re hearing $625,000 is kind of the number. Key thing here is that FHFA has not given direction as to where those loan limits are going.
Now, intuitively looking at the rapid rise in appreciation, we saw nationally, as of July, we saw a 20% year over year appreciation gain, record breaking, first time ever, insane. So with that FHFA will typically follow to increase the conforming loan limit to coincide with appreciation numbers, meeting home values, all of that, to ensure that the opportunity for individuals to purchase in a raising price environment is still there. Lower down payment options. The list goes on and on. With that said, typically we do not see this formal directive from FHFA until early to mid November. But again, I’m, I’m pretty confident. $625,000 will be that number, but just really wanted to get this message out that it is not clearly defined as of yet. But the data is forthcoming. So stay tuned. I look forward to sharing with you. Hope you guys have a wonderful day. Talk to you. Thank you.