We have some exciting news to share today with homebuyers and home sellers alike. The FHA and conventional mortgage loan limits have gone up so we’re here today to give you the details.
For homebuyers, the changes give you the ability to buy more home while putting down less. Instead of having to put down 10%, you can put down 3.5% and get a nicer home.
In San Joaquin County, the FHA loan limit has been raised to $391,000. In Stanislaus County, that figure is up to $322,000. In higher-priced areas like Alameda, Contra Costa, Santa Clara, and San Francisco, the limit has gone up to $679,650. The conventional loan limit has also gone up to $453,000. If you’re a homebuyer in one of these areas, your buying power has been greatly increased. That’s great news.
How will these changes affect sellers? Well, they will net more money for starters because of the increased buyer pool. This is a win-win for everyone who gets involved in this market. This increase comes after years of limits that were determined based on a national average. The new limits give more buying power to everyone, but especially those in higher-priced areas.
These changes won’t take effect until 2018, so this won’t affect most people who are writing a contract today. Finally, some good news about Stockton. It was recently ranked No. 4 in the country by Realtor.com as a high-growth area. What that means is that Stockton is going to see some heavy appreciation this year as one of the best markets in the country. This is a huge jump from just a few years ago. The Bay Area is getting maxed out, which is forcing people out to the Central Valley and pushing Stockton home values up quite a bit. This is great news for the Central Valley as we continue to grow.
It’s really exciting to finally give some great news for both buyers and sellers. If you have any questions for us in the meantime or you want some advice on how to handle this market, don’t hesitate to reach out and give us a call or send us an email. I look forward to hearing from you.