FHA loans are money that is lent through the government and there is a limit to what they are willing to lend in different areas. At the start of 2020, FHA loan limits were raised to $401,000, which means that you can get a loan for up to that price when using an FHA loan. This is in response to home prices going up in Utah and the government realizing we need more flexibility.
Conventional loan limits are rising as well. In Utah county, conventional loan limits used to be $484,250 (don’t ask me how they chose that number!) and have now risen to $510,000. If you can save 5% of that $510,000 as a down payment, you can still use a conventional loan. If, however, you want to buy a home for higher than $510,000, you’ll need to have a full 20% down.
Loan limits going up simply means that it will be easier to buy homes in slightly higher price points and you’ll have more variety when shopping both homes and loans!
