FHFA Announces Increase to Conforming Loan Limits for One-Unit Properties in 2018

Just last year, the Federal Housing Finance Agency (FHFA) announced an increase in conforming loan limits for both one-unit and multi-unit homes.

On November 28, it was announced that limits for one-unit homes will increase yet again by 6.8% next year. In 2018, the loan maximum for one-unit homes will rise to $453,100 from $424,100 in most of the U.S.

Seeing two loan limit increases within two years is an exciting development. Before 2017, loan limits hadn’t changed since the 2006 housing crisis.

Fannie Mae and Freddie Mac are government-sponsored agencies that only purchase conforming loans that meet loan amount limits. Increasing these loan maximums expands options for homebuyers that can qualify for larger home loans.

Keep in mind that the 2018 increase is only for one-unit properties. We’ve included a table below with a breakdown of the new limits for both one-unit and multi-unit homes.


One-Unit Home Loan Limit for High-Cost Areas

High-cost locations where median home values exceed $453,100 will see a loan limit increase as well. The one-unit loan maximum for high-cost areas of $636,150 will rise to $679,650 in 2018.

The actual maximum will vary for each high-cost location, but the limit for these designated areas will not exceed $679,650. Quite a few locations that 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.


Loan Limits By Unit Size and Location

Here are two tables with the general and high-cost loan maximums


What if you need a loan that exceeds these limits?

You may fall in love with a one-unit or multi-unit home that exceeds the conforming loan limits above. Don’t worry — you still have options.

Mortgage products that exceed the loan limits will not be purchased by Fannie Mae or Freddie Mac, but these products are still available to qualified borrowers.

Jumbo loans are a solution if you need a larger loan to buy the home of your dreams. Jumbo loans do tend to have more strict qualifying eligibility requirements. However, we’re happy to review your financial situation so we can discuss your buying power.

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