To qualify for a $1 million mortgage, Americans typically need to make a down payment of at least 20% of the home’s price. Starting early next year, some buyers could downsize to less than 3%.
Home loan limits backed by fannie mae And Freddie Mac grow up up to $1,089,300 in the next year some expensive markets Including Los Angeles and New York, above $970,800, the Federal Housing Finance Agency, or FHFA, said Tuesday. The higher limit means borrowers can qualify for larger loans without needing to take out jumbo mortgages, which are not federally backed and have more stringent requirements for income, credit and down payments.