Today we have some pretty big news for you: Recently, Fannie Mae and Freddie Mac, the largest backers of mortgages in the entire country, have raised their loan limits in Arizona to over $510,000.
This is huge considering that from 2006 to 2016, conventional loan limits hardly even budged. Since 2016, the loan limit we’re referencing has gone up by almost $100,000! What does that mean for you?
Well, for example, if you wanted a $600,000 home, you would need a jumbo mortgage (unless, of course, you had an incredibly large down payment). Now, with the new loan limits, you can receive something called a conforming loan—something that works within Fannie Mae and Freddie Mac guidelines—all the way up to $510,000.
This allows you to have lower down payment options, like 5% down. A common misconception surrounding conventional loans is that they require 20% down. That’s not always the case; there are conventional loan products on the market now that only need 5% or 10%.
If you have any questions about these new limits or what they may enable you to do, don’t hesitate to reach out to us. We’re always happy to help.