The Salt Lake high-end housing market recently received a boost, when conforming loan limit went up from $417,000 to $729,750 in Salt Lake County, Tooele County, and Summit County.
This increase means that Fannie Mae and Freddie Mac can now provide loans up to $729,750, which should result in a much-needed boost to the Utah housing market. High-end homes have recently undergone a slowdown, mainly because lenders shutdown the Jumbo Loan market as part of the sub-prime scare. Lenders have since discovered that Jumbo Loans are not the real problem, and are now starting to relax lending requirements. This coupled with the new lending limits should hopefully put some much-needed life into Salt Lake’s high-end real estate market. Many home buyers will now be able to take out a single loan, without the need to take out a jumbo loan, with their high interest rates and down payment requirements.
In addition to Fanny and Freddie raising their limits, FHA loan limits also went up from $364,000 to $729,750, further opening up finance options to home buyers.
To determine how these changes will affect you, we recommend that you seek the advice of a mortgage professional. Alternately, you can post your question here, and we will get a mortgage professional to reply.