'I think the higher limits helped with some pent-up demand from buyers.' “I’ve been surprised by how many new loans we have seen since the limits were increased this month,” said Dean Wegner of the Scottsdale office of HomeStreet Bank. Government-backed mortgages are popular with lenders because they carry less risk and usually mean lower interest rates for borrowers.Īnd it sounds like the boost is paying off already. So with the new Fannie and Freddie loan limits, a buyer could now purchase an almost half-million dollar home with a 10 percent down payment. The Valley’s median home price is about $250,000, up about 6 percent from last year. Move-up homes in the area are typically priced at about $500,000. “The loan limit increase is a small but necessary drop in the bucket of necessary moves that will continue to help the Phoenix housing market grow,” said Amy Swaney, branch manager of Citywide Home Loans in Scottsdale.Īnd she said the changes will not only help first-time buyers but also move-up buyers. Limits on federally-backed mortgages went up in most parts of the U.S. Most mortgage brokers and real estate agents are cheering the loan increases. SEE ALSO: 2017's strong housing market in Phoenix gives 2018 a lot to live up to A market boost More than 15 percent of Phoenix-area homebuyers took out Federal Housing Administration loans in 2017. The loan limits on Federal Housing Administration loans climbed to $294,515 from $279,450 at the beginning of the year. That's up $29,000 from last year.Īlmost half of Valley homebuyers took out a loan backed by one of those two federally-owned mortgage giants last year, according to The Information Market, owned by the Arizona Regional Multiple Listing Service. Homebuyers can now borrow up to $453,100 using Fannie and Freddie mortgages.

The Federal Housing Administration, Fannie Mae and Freddie Mac have raised the loan limits for mortgages.Īlmost 64 percent of all Phoenix-area homebuyers used one of those loans to buy in 2017, so the higher limits are bound to give the market a boost. But this month, government mortgage backers began offering a little extra help. Rising metro Phoenix home prices are making it harder for many buyers. Thanks to a little boost from mortgage lenders this month, 2018 could be the year all those Street Scout and Zillow couch surfers finally pull the trigger on their dream home.

Freddie mac loan limits for 2017