This week, Fannie and Freddie announced an increase in conventional loan limits to $484,350 for 2019. The Federal Housing Finance Agency has increased the conforming loan limit for the third year in a row for nearly every part of the United States. This year’s increase is 6.9% over last year’s loan limit, based on the 2018 House Price Index, which includes estimates for an increase in U.S. home values. What does this mean to Chattanooga home buyers? Plenty!
The myth that the average home buyer must put down 25% is slowly being debunked. Today’s home buyer with good credit and employment history can put down as little as 5% on a conventional home loan. With the 2019 loan limits, that means a consumer can purchase a home up to $510,000 with just 5% down. With a down payment of 25%, (Congrats to you!), you can purchase a home in the low $600,00’s.
Home values in Chattanooga held steady throughout the great recession and have grown reasonably, but steadily since the improvement of the economy, making a home purchase above the median home price a good investment, not a risk. With older millennial buying homes at an increased rate this year, the demand for “starter” homes in the $175-25,000 price range is creating a time on market of less than 60 days. Those interested in selling their homes and “moving up” can now rest assured that their current home will sell before they start looking.
As of today, there are more than 787 homes on the market in Chattanooga and North Georgia between $350,000 and $650,000, giving consumers a wonderful opportunity. Whether your family has outgrown your current digs, you have your eye on a waterfront or mountain view home, or you are just ready for a change of scenery, the news from the Federal Housing Finance Agency, Freddie Mac and Fannie Mae is truly welcome. Wondering where to start to get pre-approved? We are here to help. Give us a call or email us today for more info.