Due to the rapid growth in house prices, borrowers are being pushed into jumbo loan products to obtain loans for homes that would have qualified for conventional financing months ago. But jumbo loans generally have higher rates, require larger down payments, and are more difficult to obtain.
In these market conditions, Geneva said increasing loan limits would temporarily allow its borrowers to obtain conventional financing at lower rates.
âIt has been an unusual season in the mortgage market, and home buyers are feeling the impact of rising home values ââin addition to low inventory. Said Aaron VanTrojen, CEO of Geneva Financial. âWe are committed to providing opportunities for borrowers and saw the need to work with our aggregators to increase conventional loan limits prior to the FHFA announcement. “
“By increasing loan limits on conventional loans, we are able to further support our clients in a competitive housing market while rates are still low,” added Caliber CEO Sanjiv Das. “Jumbo loans are not feasible options for everyone, and higher compliant loan limits may help some borrowers who are trying to buy a home or access cash.”
Phil Shoemaker, president of fixtures at Homepoint, said that with soaring home prices, the company “wanted to act quickly” so that its mortgage broker partners “can be at the forefront of providing better housing. affordable to borrowers in their communities “.