Why Trying to Buy a Home Will Get Harder

If you’re planning to purchase a home in the near future, you better hurry. According to a recent MarketWatch article, the loan limits for some mortgages are scheduled to decrease in January 2014.

The maximum size of mortgages eligible for backing from Fannie Mae and Freddie Mac (currently as high as $417,000) are set to be cut back by the Federal Housing Finance Agency next year. The new loan limits have yet to be announced.

In addition, the Consumer Financial Protection Bureau will introduce new mortgage rules. These rules will limit the types of mortgages that can be provided by lenders.

What does that mean for you?

It means if you’re applying for a mortgage next year, you will have less options (and also more expensive) for financing than you have right now. Consequently, less people might be able to purchase a home. Those with smaller down payments might be out of luck.