Rocket Pro TPO said it would increase its conforming loan limits to $750,000 Monday before the Federal Housing Finance Agency (FHFA) in November.
Rocket Pro TPO Executive Vice President Mike Fawaz said they are the first company for the second year in a row to apply the new conforming loan limits.
“It’s all about the inches,” Fawaz said. “And in my opinion this gives the brokers another inch and another edge to compete in this market.”
Fawaz said raising the limit would give its partners and clients a huge advantage over their competitors.
The current limit on conventional loans is $726,200, so partners and clients of Rocket will have an advantage over their competitors, Fawaz said.
Rocket had said that brokers could start sending in applications following the new limits now.
“We did it last year and it was a big hit with the broker community,” Fawaz added. “It felt good to be the first company to do it.”
Conventional loans are typically more attractive to a seller compared to jumbo loans, offering borrowers better interest rates, lower monthly mortgage payments, and faster loan closings.
Rocket increased its conventional loan limits to $750,000 on Monday, a 3% jump ahead of the FHFA’s anticipated 2024 increase on the current conventional loan limit of $726,200. At the time, Rocket said raising the limit would give its partners and clients a huge advantage over their competitors.
“This year is even more important than ever because of what the market is and what’s happening,” Fawaz said.