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Indeed, Rocket Pro TPO – the wholesale arm of Rocket Mortgage – hiked its conforming loan limits to $715,000 last year. Like this year, Rocket was the first to increase loan limits. At the time, a Rocket Pro TPO official ticked off the advantages of the increased loan limit – more borrowers able to secure better rates, more attractive pricing, less money down on purchases, greater cash-out availability on refis and an easier underwrite than that involving a jumbo loan.
Heightened loan cap comes amid economic challenges
With mortgage rates hovering at around 8% against a backdrop of inflation and soaring property values, the timing of the loan cap increase is fortuitous for brokers seeking to increase their volume amid economic challenges. “The market in the last 12 to 14 months has been tough,” Fawaz said. “So, this year, based on where the market is and based on where the economy is, it’s more important – and, I believe, more impactful – than ever before. My team has been working very hard to give the broker community a weapon.”
Fawaz reiterated how the lender is the first to offer the higher loan cap: “Going out in the market as the only lender so far that can offer such an incredible opportunity for the brokers in this market is a big deal to us.”
How does Rocket update its loan limits so early?
In making the announcement, the company described how it’s able to update its loan limits early because loans are sold to Fannie Mae and Freddie Mac up to several months after the loan is closed. Lenders will hold loans on their books until they can be sold to a mortgage investor in the routine of doing business, the company noted.
In addition to increasing its conforming loan limit to $750,000 for a one-unit property in the contiguous states, the limit for a single-unit home in Alaska and Hawaii has been set at $1,125,000.
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