The Federal Government May Guarantee Mortgages of Nearly $1 Million
Industry Update
November 16, 2021
Source: The BL
Fannie Mae and Freddie Mac will raise lending ceilings in the next few weeks, making it more straightforward for buyers of more expensive homes to obtain financing.
In low-cost markets, the conforming loan maximum is likely to grow to $650,000 and roughly $1 million in high-cost markets. For single-family homes, the current conforming loan limitations are $548,250 and $822,375, respectively.
The regulator overseeing the two mortgage behemoths is expected to release the exact lending limitations on Nov. 30. The new limits will take effect in January.
The increased loan limits should make it easier and less expensive for purchasers to obtain a mortgage for sums just over Fannie Mae and Freddie Mac’s current restrictions.
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