A month after the Federal Housing Finance Agency announced a conforming loan limits change for 2017, the FHA said that it would raise its maximum loan limits as well.
As Realtor.com explains, higher loan balance limits can be the difference between renting and owning for many people. The FHA Loan allows a low down payment and is flexible regarding borrowers’ credit scores and debt-to-income ratios.
Using Sonoma County, California, as an example, the maximum loan limit for 2016 was $554,600. This number is rising to $595,600 for 2017. This represents a significant change for people looking to purchase a home who have good income, sufficient credit, and a healthy debt-to-income ratio who are otherwise tight on cash to close.