Why It Just Became Much Easier To Buy a Home
What the new FHFA limits could mean for buyers and sellers in 2022
- December 8, 2021
- 2:26 pm
- Market Trends, News
Prices boomed during the pandemic
Since the pandemic began, home prices have increased dramatically. In the D.C. Metro area, in counties like Loudoun and Fairfax, this has pushed out many potential homeowners for the market due to their inability to qualify adequate loan amounts.
Not every purchaser has been able to fulfill their desire for a new home. Here are two obstacles some homebuyers are facing:
- -The ability to save for a down payment
- -The ability to qualify for a mortgage at the current lending standards
This past week, both of those challenges have been mitigated to some degree for many purchasers. The FHFA (which handles mortgages by Freddie Mac, Fannie Mae, and the Federal Housing Administration) is raising its loan limit for prospective purchasers in 2022. The term used to describe the maximum loan amount they will entertain is the Conforming Loan Limit.
“Conforming loans are the only loans that meet the requirements to be acquired by Fannie Mae and Freddie Mac. Jumbo loans, which exceed the conforming limit, are the most common type of nonconforming loan.”
What Difference Does It Make to Me as a Home Buyer?
If not for the higher limits, many houses would be out of reach. However, this can also fuel the market to the same type of seller’s market we saw over the summer. This could potentially mean increasing home prices due to higher buyer demand.
Additionally, more homes now qualify for loans with low down payment requirements and fewer lending benchmarks.
What about as a home seller?
While for buyers this may mean buying a first or next home may have just gotten much easier (less stringent qualifying standards) and less expensive (possibly lower mortgage rate)… for sellers in 2022 it could spell out an ideal time window to sell a home for maximum benefit. With many experts expecting interest rates to increase in the coming year, this could create an opposite effect on market values anywhere from a few months to end of 2022.
Everyone’s situation is a bit different baased on your home’s location, condition, and other factors. For those wanting more information, let’s connect to discuss how these changes may impact you. Contact me today for a quick chat if you’re thinking about your real estate plans for 2022.
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Joy Muczko
As a full-time Realtor who has lived in Loudoun County for many years, I strive to provide the best possible outcome for all of my clients. After years working in the real estate industry as a service provider, salesperson specializing in New Construction, and investor, I took what I learned and brought it with me into my career as a full-time Realtor. With a focus on maximizing sales price for listings, new construction specialization, and negotiating aggressively for my clients, I work tirelessly until my clients are completely satisfied with their real estate experience. Beyond work, I enjoy spending time with my husband and children, playing tennis, gardening, and visiting all the great places that Northern Virginia has to offer. I truly love living here in Loudoun County and have a passion for helping people begin the next chapter of their lives.
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