Are the Levels Set in Stone?
The loan amounts made available through Freddie Mac and Fannie Mae vary by region. The government-sponsored and secured home loans have limits based on the rating of individual areas. Areas where the average home price is high have a threshold far higher than those areas seen as poorer. The Mortgage Bankers Association, or MBA, explains house prices in some states have risen above the national average. In New York, Lynx Mortgage Bank LLC is authorized to provide loans up to $970,800.
What Is the Loan Amount?
Lynx Mortgage Bank LLC is working within the loan limits set by Freddie Mac and Fannie Mae and announced by the MBA. The limits are calculated to reflect the current housing market. Loan amounts permitted have jumped by $98,950 in the majority of the U.S. Ninety-five percent of the counties in the U.S. will award FHA and GSE loans up to $647,200. Loan amounts of up to $647,200 are available in the majority of the U.S. for single-unit homes. Higher loan amounts are available for clients looking to purchase two, three and four-unit multifamily properties. In low-cost areas of the U.S., the available loan amount falls to $420,680.
A Rising Loan Amount
Before the 2008 housing market crash, the amount of funding available through FHA and GSE loans was lower. The protection of the housing and loan markets has been high on the list of priorities for the federal government ever since. In response to the changing markets post-2008, the workings of Fannie Mae and Freddie Mac were updated. Congress voted to update the way loans were awarded through the FHA and GSE lenders to reflect the changing real estate market.
We are currently living through a period of rising house prices. The Federal Housing Finance Agency reports the average house price in the U.S. was $33,000 in the early 1970s. By 2008, the average house price had risen to $417,000. The loans offered through FHA and GSE lenders need to reflect the rise in the average house price to make buyers competitive.
When you want to learn more about FHA and GSE lending, call Lynx Mortgage Bank LLC in Westbury, NY to talk to a mortgage expert.