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Amount Prospective Homeowners Can Borrow Going Up In 2017

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In 2017, for the first time in a decade, the Federal Housing Finance Agency is raising the amount of money that will qualify for Fannie Mae and Freddie Mac, government backed loans. Loans that exceed the Fannie Mae and Freddie Mac limit are called “Jumbo” mortgages. These mortgages are held by the lenders themselves or they are sold to private investors. In most situations Jumbo loans require a larger down payment and the underwriting requirements are more detailed.

The current limit for 2016 was $417,000.00. this has been the limit since the year 2006. For 2017 the amount that can be borrowed will increase by $7,000.00 to $424,000.00. However, it should be noted in expensive areas of the country like New York, the limit will go to $686,000.00.

As home prices have recovered from the real estate crisis, higher loan limits will allow prospective homeowners to have more flexibility in terms of obtaining government backed mortgages. The real estate website Zillow expects home prices to increase by approximately 3.5% in the year 2017.

The Amount of Down Payments

Generally speaking, most financial institutions require 20% down payments on mortgages. However, the amount of down payments required has been decreasing. Some banks will accept down payments as low as between 3 and 5%. When a mortgagor seeks a down payment in the 3-5% area, they are required to buy mortgage insurance. Unfortunately, the mortgage insurance adds to the monthly mortgage cost.

Elliot-Schlissel

Elliot S. Schlissel is a foreclosure defense attorney representing homeowners throughout the Metropolitan New York area. Elliot and his dedicated associate attorneys diligently work to help their clients obtain mortgage modifications and take legal action to set aside mortgages.

Valley Stream, Lynbrook, Baldwin, Malverne, Freeport, Oceanside, Long Beach, Elmont, Lakeview, West Hempstead, Hempstead, Merrick, Bellmore

We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

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