Raleigh mortgage lender and Certified Mortgage Advisor Kevin Martini announced on September 12, 2022, the Martini Mortgage Group at Gold Star Financial will be offering an interim increased conforming loan limits for the balance of 2022. The new 2022 interim conforming loan limit for one-unit properties (and higher for more units) is going to be $715,000 with the Martini Mortgage Group, an increase of $67,800 from $647,200 from earlier in 2022.
What is a Conforming Loan?
A conforming loan, also referred to as a ‘conventional’ or ‘agency’ loan, is any mortgage that meets the Fannie Mae or Freddie Mac guidelines. Fannie Mae and Fredie Mac are government-sponsored entities (a.k.a. GSE). In other words, a conforming loan ‘conforms’ to the asset, credit and income guidelines set forth by Fannie Mae and Freddie Mac. The Federal Housing Finance Agency (FHFA) sets the conforming loan limit based on the FHFA House Price Index (HPI) for the third quarter of the year which covers the last four quarters.
Why the Martini Mortgage Group is offering a 2022 Interim Conforming Loan Amount
The Martini Mortgage Group at Gold Star Financial projects that the 2023 Conforming Loan Limits will increase to $715,000 for one-unit properties (and higher for more units) to adjust for surge in the average U.S. home prices.
I say ‘projected’ because the official number has not been released however we at the Martini Mortgage Group support the projected number ahead of the Federal Housing Finance Agency official announcement that should be released later this fall to help the families we serve today.
Logan Martini
Higher Conforming Loan Limits benefit homebuyers and homeowners
For homebuyers, there is a true cost of waiting to buy a home. During the past year, home prices have risen by approximately 15%+ in many markets. This means it takes $575,000 to purchase a home that you could have purchased a year ago for $500,000. While 15%+ annual increases in home prices are unlikely, a more reasonable scenario is that home prices may rise by 5%+ in the coming year. That’s because supply is likely to remain low and demand is likely to remain high. If home prices only go up by 5%, you may lose another $30,000 – $60,000 if you wait, depending on your price range.
For homeowners, the higher conforming loan limits means a homeowner can access more of their ‘tappable equity’. Tappable equity is defined as how much equity homeowners have available to access while retaining at least 20% equity in their homes. In other words, it’s how much equity you’d have available to tap into if you borrowed up to 80% of your home value.
How can you benefit from the new higher Interim Conforming Loan Limits offered by the Martini Mortgage Group?
Buying a home as a first-time home buyer or as a repeat homebuyer is a process not an event. It is also a process for a current homeowner that wants to access their earned tappable equity. The process start with a conversation with either Logan Martini or Kevin Martini with the Martini Mortgage Group. Let’s chat to discuss the process and allow us to provide you not just with price and cost clarity but also, certainty.
Logan Martini
NMLS 1591485 | Senior Mortgage Strategist | Martini Mortgage Group at Gold Star Mortgage Financial Group, Corporation | NMLS # 3446 | 507 N Blount St, Raleigh, NC 27604 | (919) 238-4934 | www.MartiniMortgageGroup.com | [email protected] | Equal Housing Lender
Kevin Martini
NMLS 143962 | Certified Mortgage Advisor | Martini Mortgage Group at Gold Star Mortgage Financial Group, Corporation | NMLS # 3446 | 507 N Blount St, Raleigh, NC 27604 | (919) 238-4934 | www.MartiniMortgageGroup.com | [email protected] | Equal Housing Lender
