Government Loan Limit Increase 2025

Government Loan Limits Increase 2025 FHA Limits   FHA announced the new FHA loan limits for case numbers assigned on or after January 1, 2025. Nearly all U.S. counties will have an increase in loan limit in 2025. FHA is increasing the limit on 1-unit properties from $498,257 to $524,225, an increase of almost 5.25%. High-cost areas will also see an increase from $1,149,825 to $1,209,750. The FHA case number must be assigned on or after January 1, 2025 in order to use the new limit regardless of when the application is taken. You may view the limits by individual county on HUD’s Maximum Mortgage Limits web page.   FHA Earliest closing/funding date using the new 2025 limits: To use the 2025 limit, the case number must be ordered on or after January 1st, 2025, therefore the earliest closing date will be January of 2025.   FHA Case Numbers assigned in 2024 wishing to use the new 2025 limit: Case numbers assigned prior to January 1, 2025, wanting to use the new 2025 limits must be cancelled. And a new case number must be assigned on or after Jan. 1, 2025, in order to use the increased limits. No Exceptions. Pricing FHA loans using the new 2025 limits: Effective with new locks starting today, we are accepting the 2025 loan limits on FHA, see below on how to obtain pricing.   Optimal Blue is updated with the new FHA limits. Within Optimal Blue, in the bottom left corner is a FHA case number assigned date dropdown. The dropdown currently defaults to 2024 case number dates, so just change it to “on or after 1/1/2025”.The “On or after 1/1/2025” selection will become the default option on new OB registrations starting December 31,2024.See example: FHA Case Number Assigned Date Dropdown   *NOTE* Not all investors are currently accepting locks on 2025 limits yet. Optimal Blue will automatically be updated as those investors announce effective dates.   VA Limits Full Entitlement: VA does not publish a maximum guaranty amount for loans greater than $144,000 where the Veteran has full entitlement.   Partial Entitlement: For Veterans with partial entitlement, VA’s maximum guaranty is a percentage of the conforming loan limit which for 2025 is $806,500. To use the 2025 limits, the closing date must be on or after January 1, 2025. For Veterans with partial entitlement, VA’s maximum guaranty is a percentage of the 2025 conforming one-unit county loan limit for which the property is located. Loans for veterans with partial entitlement may begin using the 2025 conforming limit for max loan amount calculations for closing dates on or after Jan. 1, 2025. No Exception!   VA Earliest closing/funding date using the new 2025 limits: The earliest closing/funding date for 2025 limit is January 1, 2025.No Exception!   VA Earliest Lock date using the new 2025 limits: Locking VA loans using the new 2025 limit will be available startingDecember 26th.   *NOTE* Not all investors are currently accepting locks on2025 limits yet.  Optimal Blue will automatically be updated as those investors announce effective dates.   USDA USDA does not publish maximum loan amount limits. USDA loans only need a condition commitment reflecting the correct loan amount to proceed. There is no closing/funding date restriction since USDA does not impose a max loan amount limit.

View more

Why Owning a Home Is Worth It in the Long Run

  Today’s mortgage rates and home prices may have you second-guessing whether it's still a good idea to buy a home right now. While market factors are definitely important, there’s also a bigger picture to consider: the long-term benefits of homeownership. Think of it this way. If you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. That’s because over time, home values usually grow – and that means a homeowner’s net worth does too. Here's a look at how that can really add up over the years. Home Price Growth over Time The map below uses data from the Federal Housing Finance Agency (FHFA) to show how much prices have grown over the last five years. Since home prices vary by area, the map is broken out regionally to really showcase larger market trends: You can see that nationally, home prices increased by over 57% in just five years. Some regions are slightly above or below that average, but overall, home prices saw a big uptick in a short time. And if you zoom out even more, the benefit of homeownership — and the drastic gains homeowners made over the years — become even more clear (see map below): The second map shows that, over a roughly 30-year span, home prices appreciated by an average of more than 320% nationally. So the typical homeowner who bought a house about 30 years ago saw their home triple in value during that time. And that’s a major reason so many homeowners who bought their homes years ago are still happy with their decision today. Bottom Line There’s no denying today’s market is complex. But if you’re ready and able to buy right now, let’s connect to talk about how we can still make your move happen. That way you can take advantage of the long-term advantages that come with homeownership, like your ability to build wealth as your home value rises. 

View more

Percent Change in Home Prices

Did you know? The average home’s value went up by more than 57% over the past 5 years. And if you expand that to roughly 30 years, home values have more than tripled.  That gives homeowners a big boost to their net worth. So, if you’re ready and able to buy, DM me, and let’s find something that works for your budget and sets you up to start growing your wealth today. #homeownership #homepriceappreciation 

View more