Reali Roundup: Beefier Loans Coming in ‘21

Welcome to the weekend, friends! Did you hear that you can borrow more for your mortgage loan this year? We’ve got the details on that below, as well as the latest SoCal housing needs assessment and how it can help potential homebuyers looking for a place in the area. Let’s break it down.

Gov’t Gives Borrowers a Shot in the Arm

Here’s some good news for all the lovely potential loan applicants out there: buyers in 2021 can borrow more than they could last year. The FHFA determines how much one can borrow by analyzing the average repeat purchase and refinance data for single-family home mortgages across the nation.

What you need to know: this year’s amount will increase by 7.4%, or about $38k. This boost will likely be lauded as manna from heaven by potential CA homebuyers, who face an increasingly tight and competitive housing market. Take advantage of that extra breathing room, California!

One Good Determination Deserves Another

In its Regional Housing Needs Assessment (RHNA), the CA Department of Housing and Community Development determined that Southern California counties will need 1.34 million additional housing units through 2029. This determination, obviously, is critical to easing the region’s housing squeeze. So, the RHNA decision is closely watched, as it controls the fate of those content with the status quo and, well, those who would like to live in California one of these days. While we wait to hear the final details, let’s get your search started now.