• Many consumers have recently faced higher rates or have been forced to put down larger downpayments due to a change to the way loans are classified.
  • The maximum size of a loan that can be financed by the FHA  was reduced forcing some borrowers to make larger downpayments.
  • The minimum size for jumbo loans (i.e., loans not eligible for FHA, Fannie Mae, or Freddie Mac financing) may also have been lowered, forcing many prospective buyers to increase their downpayments and/or pay higher mortgage rates.
  • 17% of respondents with a seller-client reported that their seller client was negatively impacted by the change in the FHA or GSE loan limits.
  • Sellers’ agents who responded to the survey noted that the disruption from the change in limits caused some sellers to lose their homes to foreclosure. In other cases, sales took much longer due to a decline in buyer interest.
  • To read the complete new “Impact of New Conforming Loan Limits” survey, click here >