More luxury homes no longer require jumbo loan financing

Luxury homebuyers who will need financial assistance with their purchase might be relieved to know that more than 2 million homes will no longer require financing with a jumbo loan, according to a new analysis by Zillow Home Loans, a division of Zillow Group Inc. (NASDAQ:Z) (NASDAQ:ZG).

The change is attributed to a recent action by the Federal Housing Finance Agency’s (FHFA) that increases conforming loan limits to $1,089,300 in 103 high-cost markets; this marks the first time that the conforming loan limit was higher than $1 million. For most of the country, the FHFA”™s the conforming loan requirement was increased from $647,200 in 2022 to a baseline of $726,200 this year.

“The addition of 2 million homes that now qualify for conforming loan options across the county is welcome news for home buyers entering a shopping season with fewer homes on the market,” said Nicole Bachaud, Zillow Home Loans senior economist. “Home price appreciation has slowed significantly, and this means that homes nearing jumbo loan territory will stay eligible for conforming loans longer than we have seen in the last few years.”