It’s been an unusual season in the mortgage market and homebuyers are feeling the impact of increasing home values on top of low inventory.” Aaron VanTrojen, CEO of Geneva Financial stated. “We are committed to providing opportunity for borrowers and saw the necessity to work with our aggregators on increasing conventional loan limits ahead of the FHFA announcement.”
Due to the substantial uptick in home values, borrowers are being pushed toward jumbo loan products to obtain financing for homes that would have qualified under conventional financing 12-18 months ago. Jumbo loans carry higher rates, larger down payments, and more stringent qualifying requirements. Increasing loan limits will temporarily allow Geneva borrowers the opportunity under these unusual market circumstances to obtain conventional financing at lower rates.