Maximum Loan Limits Increase Nationwide

Most of the loans done in the United States end up with Fannie Mae, Freddie Mac, or The Federal Housing Administration (FHA).  All three agencies have Maximum Loan Limits, meaning that regardless of someone’s qualification there is a cap on the loan amount.  Over the last few days all three announced increases to those limits.   This year those increases were rather large due to the huge home appreciation rates the industry has seen.

There are two buckets for the caps that vary by area of the country.  Most of the areas we serve in Michigan and Ohio are considered low costs areas.  The low cost areas were increased as follows:

Fannie Mae & Freddie Mac Conforming Loan Limits For 2022
Property Size Baseline Loan Limits
One-Unit $647,200
Two-Units $828,700
Three-Units $1,001,650
Four-Units $1,244.850
 FHA Loan Limits
Property Size Low-Cost Area “Floor”
One-Unit $420,680
Two-Units $538,650
Three-Units $651,050
Four-Units $809,150

 

This is all great news for home buyers and sellers.  For buyers looking in that higher end market they are now able to reach some higher price points without needing “jumbo” financing.  Typically with jumbo loans they have less attractive financing terms and more strict qualifying guidelines.  These welcomed increases are bound to help keep that higher end market moving.  If you have questions or need help with financing your next home don’t hesitate to reach out!

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Buying and Financing Rental Property 2022 Event

July 2022 Lunch & Learn Event and Webinar for Realtors and Investors

Working with home buyers searching for a new primary residence is a totally different game compared to working with investors and rental property.  Sure, there are similarities, but what want-to-be home owners care about is different than what an investor cares about.  Frankly, for an investor, it’s all about the money and it should be.  When someone purchases a rental property they are essentially running a business.  If we can help them run a successful business and turn a profit they will likely come back and buy more properties.

There are lots of want-to-be investors out there and the hardest part is getting started.  We are going to help unravel the maze.  We will also look at long term planning.  Often just knowing what needs to happen to acquire the next property and the next one after that is one of the keys to success.  Owning rental property can be a great way to build wealth and we are here to help.

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