Federal Housing Finance Agency Raises Freddie Mac and Fannie Mae Maximum Loans For Third Consecutive Year
Gresham first time home buyers in need of a larger loan may find themselves in luck if they qualify for Fannie Mae and Freddie Mac loans. After a long period of maintaining the maximum conforming loan limits on mortgages to be acquired by Fannie Mae and Freddie Mac, the FHFA has decided to increase the loan limits. For 2006 to 2016, the FHFA did not opt to increase loan limits. This year, 2019, will make the third year of increasing loan limits for Fannie Mae and Freddie Mac loans.
Gresham Home Prices Are On The Rise
The original conforming loan limits for Fannie Mae and Freddie Mac were determined by the Housing and Economic Recovery Act of 2008. This act established the baseline loan limit at $417,000. Additionally, it was decided that, after a period of price declines, the baseline loan limit would not be allowed to rise again until home prices return to pre-decline levels. So why the change over the past three years?
Home prices across the country, and in Gresham, are on the rise. According to the FHFA’s third quarter 2018 House Price Index report, home prices increased 6.9%, on average, between the third quarters of 2017 and 2018. The maximum conforming loan limit in 2019 is, therefore, rising to match – from $453,100 to $484,350.
Gresham Home Buyers Will Be Able to Keep Up With Increased Home Prices
The increased conforming loan limit on Freddie Mac and Fannie Mae is good news for the Gresham home buyers. Those looking to buy a home in Gresham will more easily be able to keep up with price increases when the maximum loans they qualify are higher.
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