Most homes are purchased with mortgages these days, especially when the list price of the home is over $300,000. That may be why the conforming loan limit was set at $322,700 originally, but by January 1, 2004 the new loan limit will be set at $333,700, allowing home buyers to purchase almost $10,000 more worth of home.
This will likely be pleasing to anyone seeking to purchase a home in tantalizing Tierra Verde, or beautiful Bardmoor or Bayou Club, all of which have home prices starting from $300-500,000. My seller-client in Tierra Verde will probably also be pleased, since his house is listed at $349,900. Why?
Well, the increased loan limit amount increases the purchasing power for home buyers. Someone who may have only been able to afford a $330,000 home may now be able to afford up to $350,000, depending on the lender and the terms of the loan.
For those who are seeking to buy a new home right at this moment, but would like to take advantage of the new loan limit will not have to wait until next year. Many lenders, and even some banks already have mortgage packages available for the new loan limit that will take effect Jan. 1. The only catch is that if you get your loan now, the purchase of your new home must close after Jan. 1, 2004, when the new limits officially take effect, but you would still be able to put the home that you want to buy under contract today, if you wanted to.
To find out more about the new loan limits, click here to read all about it in today's St. Petersburg Times.