New 2018 Loan Limits for Scottsdale Home Buyers

If you’re like most people, you need a mortgage to buy a new home – and what happens in the finance industry directly impacts your ability to buy.

 

The Federal Housing Administrtaion, Fannie Mae and Home in 5 and Home Plus Grant programs have just announced new loan limits and program features that could help you as you prepare to buy a new home in Scottsdale or the surrounding communities.

 

The Federal Housing Administration announced that new files opened after January 1, 2018, will be eligible for higher loan limits.

 

Specifically, Maricopa County loan limits are increasing from $279,450 to $294,515. (You can check FHA loan limits in other counties here.)

 

Starting January 1, the maximum loan limit on a Fannie Mae loan jumps from $424,100 to $453,100 in the contiguous United States. The change applies to all conventional mortgages delivered to Fannie Mae, even if they originated prior to January 1. (That means even if you begin the process now, you’ll still be eligible for the new loan limits if your process carries through the beginning of the new year.)

 

The Home in 5 and Home Plus grant programs will provide down payment assistance to eligible buyers by providing a 0-percent interest second mortgage. This replaces the current grant, and it’ll be forgiven monthly at a rate of 1/36 over the term of the lien. That means after three years – 36 months – the second mortgage will be fully forgiven.

 

When you’re taking out a mortgage, it’s important to remember that you’ll have this payment for the next 10, 15, or even 30 years – and it’s your loan, so it should work the way you want it to.

 

It’s a good idea to talk to several lenders to find out who’s willing to offer you the best terms. You can ask questions and shop around as much as you’d like to in order to determine which type of loan and what lender will best meet your needs.

 

Here’s what you should ask lenders as you shop for a mortgage:

 

• Which type of loan would you suggest for me?
• What’s the best interest rate and annual percentage rate you can offer me?
• What are the discount points and loan origination fees?
• What will my total cost be?
• Do you offer rate locks?
• Will I have a prepayment penalty?
• Can you approve loans in-house, or do they have to go elsewhere for underwriting?
• How long would it take you to fund a mortgage?
• Do you guarantee an on-time closing?

Each of these questions can help you narrow down your choices until you find the right lender. If you’re having a tough time finding a good lender, ask your Scottsdale real estate agent for a referral – he or she knows the best in the business and can connect you with someone who’s helped past clients, as well.