2022 Boise Idaho Real Estate Blog

Looking to buy a home in 2021? Your borrowing limit just increased!

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2020 saw home prices rise to nearly unprecedented levels as pent-up homebuyer demand was let out across the country. Idaho saw the highest increases in home prices and the lowest levels of inventory in the nation as thousands of people move to the state to get a piece of Idaho for themselves. As a result of rising home prices across the nation, the Federal Housing Finance Agency announced it would raise the amount of money that qualified buyers could borrow in 2021.

What is the maximum amount I can borrow for a loan?

In 2020, the borrowing limit for Fannie Mae and Freddie Mac government-backed loans was $510,400. Above that figure, loans are considered jumbo loans, which exceed the federal borrowing limits and carry higher fees and rates due to the higher insecurity. As of January 1, 2021, qualified buyers are eligible to get a loan for as high as $548,250 before going into jumbo loan territory. Fannie Mae and Freddie Mac loans are overseen by the FHFA.

The FHFA determines the loan amount increase percentage by analyzing average repeat single-family home purchase and refinance data across 400 cities across America. Overall these numbers are higher, which led to the FHFA increasing the borrowing amount by 7.4% for 2021. Click here to see the loan limit by county for each state in America. Idaho starts on page 19.

It is important to note that in metro areas that are decidedly more expensive than the rest of the country (New York City, Washington D.C., and various California cities), the FHFA sets the loan limits higher than the rest of the country to account for the high prices. The new limit of $548,250 is the national average.

If you think now is the time to buy a house thanks to increased equity and home values, ask your Build Idaho real estate agent for a free, no-obligation home valuation. In addition, your agent can set you up with an appointment with a trusted local mortgage lender to get you pre-approved for a loan.

Posted by AndrewS at 3/4/2021 12:14:00 AM

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