It’s the beginning of a new decade, and with it comes many changes to home loans and mortgages. These changes are coming to many areas, but today, we will specifically focus on conventional and VA mortgages.
Beginning January 1, 2020, big changes will take effect. Conventional loan limits will increase from $484,150 to $510,400. This means that borrowers will get the benefit of the conventional rates and programs up to the $510,400 limit without the interest rate of a jumbo loan. This is great news for borrowers looking to purchase a home in a higher price range.
Another change to go into effect in the new year is for VA loans. As of January 1st, VA will no longer classify larger loans as jumbo loans. These will now be treated as conforming loan amounts. This means VA loan amounts in the higher spectrum will qualify for regular interest rates and are no longer constituted as a jumbo loan. This is a huge benefit for Veterans. Another change for VA loans will be an increase in funding fees. First-time use will increase from 2.15% to 2.3%, and subsequent use will increase from 3.3% to 3.6%. If the Veteran receives 10% or more in disability payments, the funding fees are waived.
As you can see, the new year brings with it many changes to the world of mortgage loans. For more information, or assistance with your New Mexico home loan, reach out the team at Indigo Mortgage! You are our priority.