Today we’ll be talking about the recent increase to conforming loan limits and what it means for you.
The conforming limit is the maximum loan amount the government allows someone to borrow when using a conventional or VA loan. Essentially, it’s been increased because home prices have risen.
For 2018, the conforming limit has been $453,100—on January 2, this limit will increase to $484,350. For someone using a VA loan, this means they can borrow up to $484,350 with no down payment. A conventional loan of this same amount can be borrowed as well, but a 5% down payment is required.
Of course, you can always borrow more than this limit when using a conventional loan, but then it becomes a jumbo loan—a different topic entirely.
Conforming limits on FHA loans will increase as well. Here in Texas, the limits (depending on the county) will be anywhere between $294,000 to $386,000. You’ll need to talk with your lender to figure out what the limit is for the county you’d like to buy a home in.
If you have any questions or need more information, feel free to contact us. We look forward to hearing from you.