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FHFA Raises Conforming Loan Limits

Nov 29
10:33
AM
Category | General

On November 23, 2016, the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Freddie Mac and Fannie Mae.

The maximum loan limit for one-unit properties in 2017 will increase from $417,000 to $424,100 for most of the United States. In certain higher-cost areas, there will be a higher loan limit. Release.

The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). Until this year, the average U.S. home price remained below the level achieved in the third quarter of 2007 and thus the baseline loan limit had not been increased.

FHFA third quarter 2016 House Price Index (HPI) reported that homes nationwide were worth roughly 1.7% more than the value for the third quarter of 2007, and thus the baseline loan limit will increase by that percentage.

Above $417K is "High Balance" which goes up to $625k. Above that is what's typically called a "Jumbo" loan. There are typically rate add-ons as you increase.

A list of the 2017 maximum conforming loan limits for all counties and county‑equivalent areas in the country can be found here.

Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.