New FHA & Conventional Loan Increases for 2021!
It’s a new year — which means a lot of exciting things to anticipate and goals to accomplish. If one of your visions is to buy your first home, you’re probably looking into the process and details. There are a few things to consider when making this purchase, especially financial strategies and requirements. Luckily, a few key changes have happened to financing options — which means more flexibility and leeway for you!
FHA loans are a great way to fund your first home. This option offers low down payments and closing costs which keeps money in your pocket. Also, with this type of loan – it’s easy to qualify as long as your credit is in good standing, you have a solid employment history and an average debt-to-income ratio. Now, the Federal Housing Administration has increased the loan limit, which maxes out at $356,362! And it keeps getting better — this change applies to all Arizona counties, so everyone is included!
Another way to acquire your dream property is to apply for a Conventional Conforming Mortgage — which is the most popular type of home loan. You can enjoy the predictability of stable interest and monthly payments during the entirety of the loan term. With potential fluctuations and hikes in property value and upfront costs, you will have peace of mind when allocating your finances. As of 2021, the FHA has increased the Conventional home loan limit to $548,250 for single family, one-unit homes! And if you’re looking for more incentive: down payments can be as low as 3% of your total costs which allows for versatility when crunching the numbers!
Overall, 2021 is shaping up to be a great year for new home buyers like you. These changes in loan caps save you money, and can help you reach your goal of property ownership. If you’re ready to get started, but still have questions about the process or these new options — don’t hesitate to contact us! At Minute Mortgage, fair lending and transparency is our thing. Our loan experts will guide you through each step until the deal is done! Learn more about rate structures, mortgage packages and more here!