Page 50 - January 2021

An article from a Chicago Lodge 7 Magazine sponsor
New loan limits for homebuyers in the new year
The Federal Housing Finance Agency (FHFA) re- cently announced that it will raise loan limits for mortgages backed by Fannie Mae and Freddie Mac, giving some homebuyers greater purchasing pow- er. Starting in 2021, the maximum conforming
loan limit for single-unit properties will in- crease to $548,250 — a 7.4 percent increase from the current limit of $510,400.
The announcement is positive news for homebuyers, who will have the opportunity
to borrow more money under conforming loan guidelines in addition to taking advantage of re-
cord low mortgage rates. Any loan amount above the conform- ing limit is considered a jumbo loan, which generally has more stringent requirements and tends to carry higher interest rates.
The exact conforming loan limit varies geographically, and while it will increase to $548,250 throughout most of the country — including Illinois, Michigan, Indiana and Wisconsin — it will be higher in more expensive markets such as areas in California and New York. Raised limits reflect rising home prices through- out the U.S., including in Chicagoland, where prices are appreci- ating after remaining relatively flat over the last few years.
LISA SANDERS
Real Estate
50 CHICAGO LODGE 7 ■ JANUARY 2021
Lisa Sanders of @properties has been selling estate for more than a decade. Contact Lisa at 773-398-0378 or lisasanders.sold@gmail. com. This article was written by Arianna Frederick, the communi- cations coordinator for @properties.