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Monday, 12 February 2018 20:48

2018 Loan Limit Increase

At the beginning of 2018, it was announced that the limit for conventional, FHA and VA loans would increase. Prior to this year, the highest VA loan amount a borrower could get was $423,100, but now the limit has increased to $453,100; for FHA the old limit was $275,655, but it has increased to $294,515. What does this mean? Ben Lucero of Indigo Mortgage is here to explain:

Now that the VA loan limit is $453,100, borrowers can borrow up to that amount before being required to take out a Jumbo loan. This is good news for any veteran shopping for a home, as traditional interest rates are much lower than for Jumbo loans. FHA borrowers can also enjoy lower interest rates if the amount they’re borrowing is at or below the new limit of $294,515.

At Indigo Mortgage, we have been helping our borrowers avoid jumbo loan rates by cutting the loan into a first and second mortgage. We do the first mortgage at the limit of $453,100 and take out a second mortgage for the remaining amount. Combining loans this way works out better for the borrower, as it helps them avoid a higher rate on a Jumbo loan. For more information on the new loan limits, how Jumbo loans work, or simply how to get the best rates and terms on your mortgage, contact Indigo Mortgage! We’re here to help!

Published in Blog