1. Fannie Mae and Freddie Mac increase the conventional loan limit * The housing market is booming.
- In fact, the housing market has been burning for several years and there are no signs of correction
- With the exception of a few states, house prices have risen to record-high levels
- Homebuilders are flourishing and are expecting another star-breaking record year in 2020
- Demand for houses is higher than for equipment
- The government is aware of this and is at the top
- By adding fuel to the fire at home's demand, lenders run QM-incompatible programs and alternative financing programs such as non-QM loans, bank loans for self-employed borrowers, asset depleted mortgage programs, and other niche mortgage programs
- HUD and FHFA have raised their maximum loan limits over the past three years due to rising housing prices
- Today's groundbreaking news is Fannie Mae, and Freddie Mac raises the conventional credit limit by 2020
- A new increase in compatible credit limits will enter into force on January 1, 2020
2. What this last FHFA message means for other loan programs
Historically, whenever FHFA announces an increase in compliance with credit limits, HUD, the parent company of FHA, follows them. Gustan Cho Associates Mortgage News expects HUD to raise FHA loan limits for 2020. When this message breaks the new FHA loan limits, we will publish it immediately for our viewers. President Donald Trump signed the bill releasing the maximum VA loan limit a few months ago. VA has no maximum loan limit on VA Home Loans. We will update our viewers as the most important news develops. Stayed Tuned !!!
You want to know more, contact The Gustan Cho Team at 262-716-8151 or send a text message for faster response. Or write to us at gcho@loancabin.com. We are available 7 days a week, in the evening, on weekends and holidays.
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