Last month, the Federal Housing Finance Agency (FHFA) announced an increase to conforming loan limits.
The change to conforming loan limits may be good news for house hunters who want to obtain a home loan that exceeds current loan maximums without relying on a jumbo loan.
Fannie Mae and Freddie Mac are government-sponsored agencies that purchase conforming loans that meet specific criteria. Since 2006, the baseline limit for conforming loans has held steady at $417,000 for one-unit homes in a majority of housing markets across the U.S.
The new loan limit for one-unit homes will increase to $424,100 effective January 1, 2017. Only mortgages funded or settled on or after January 1, 2017 will qualify for the 2017 loan limits.
Designated high-cost locations where median home values exceed $424,100 have a higher loan limit ceiling.
The one-unit loan maximum for high-cost areas will increase to $636,150. It’s worth noting the actual ceiling can vary by location and may not be as high as $636,150 in some counties.
Several of the areas Atlantic Coast Mortgage serves including D.C. and certain counties within Maryland, Virginia, and Pennsylvania fall into the high-cost category.
You can find a full list of the loan limits by state and county here.
To further breakdown the new loan limits by home size, here are two tables with the general and high-cost loan maximums.
The chart below includes the general loan limits for 2017:
High-Cost Area Loan Limits
The chart below includes the high-cost area loan limits for 2017:
Do you need a home loan that goes beyond the loan limit guidelines set for conforming loans?
Mortgages that exceed the loan limits cannot be purchased by Fannie Mae and Freddie Mac and are called jumbo loans. The underwriting criteria for jumbo loans tends to be more stringent than conforming loans.However, we offer conforming and jumbo loans to qualified borrowers, so we can assist you with both options.
Interested in learning more about your mortgage options or prequalifying for a home?
*This material is not from HUD or FHA and not approved by the Department or Government Agency