Source: Daily Mail —
More Americans will be able to obtain a $1 million mortgage than ever before, thanks to action recently taken by government agencies.
The Federal Housing Finance Agency announced this week that the cap for home loans backed by Fannie Mae and Freddie Mac – the federally-backed home mortgage companies – has increased to just over $1 million for the first time in history.
The new limit impacts home buyers looking to obtain a million-dollar mortgage with as little as three percent for houses in more expensive areas like New York and Los Angeles.
According to recent data, more than 12 percent of all homes sold in October were priced at or above $1 million.
Previously, Americans had to at least put 20 percent down to obtain a mortgage of that size.
The Federal Housing and Finance Agency designates roughly 100 places throughout the U.S. as high-cost markets, which will be eligible for the $1 million mortgage.
Recent data from Realtor.com found that of all home sales in October, more than 12 percent were priced at or above $1 million.