There were no areas with a decrease in the maximum loan limits for forward mortgages though they remain unchanged in 286 counties. The maximum loan limits for forward mortgages increased in 2,948 counties, which is attributed to changes in housing prices and the resulting change to FHA’s “floor” and “ceiling” limits. The FHA noted that this amount is 150% of the national conforming limit of $424,100. FHA will also increase its “floor” to $275,665 from $271,050.Īdditionally, the maximum claim amount for FHA-insured Home Equity Conversion Mortgages (HECMs), or reverse mortgages, will increase to $636,150. In high-cost areas, the FHA national loan limit “ceiling” will increase to $636,150 from $625,500. The limits are based on a percentage calculation of the nation conforming loan limit. The FHA recalculates its national loan limit on a yearly basis. 1, 2017, and will remain in effect through the end of the year. These loan limits are effective for case numbers assigned on or after Jan. home prices.The Federal Housing Administration announced plans on Thursday to increase loan limits in 2017, announcing a significant jump in counties set to increase compared to last year.ĭue to home price increases, the FHA said that most areas in the country will see a slight increase in loan limits in 2017. The increase is good news for hopeful homebuyers around the country who can now utilize higher purchasing power to counterbalance rising U.S.
#Fhfa announces increase in maximum conforming loan limits for fannie mae and freddie mac in 2017 mac
These conforming loan limits delineate the size of mortgages Fannie Mae and Freddie Mac can buy or guarantee. Here, the baseline loan limit will be $679,650 for single-family homes, although loan limits may exceed this figure in specific areas. The FHFA also notes that “special statutory provisions” dictate different loan limits for Alaska, Hawaii, Guam, and the U.S.
The new loan limit for single-family homes in these areas will be $679,650. home price.” This is just the second time the FHFA has increased the loan limit since 2006.įor high-cost areas-where 115 percent of local median home values exceeds the baseline conforming loan limit-HERA requires that the maximum loan limit be a multiple of the area’s median home value and establishes a “ceiling” on that limit of 150 percent of the baseline loan limit. The conforming loan limit is growing by this same percentage because the Housing and Economic Recovery Act (HERA) mandates that the “baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. The 2018 maximum conforming loan limit for single-family homes will be $453,100, up from $424,100 in 2017.Īccording to the FHFA, home prices have increased 6.8 percent from the third quarter of 2016 to the third quarter of 2017. The Federal Housing Finance Agency (FHFA) has announced that it will increase the conforming loan limits for mortgages that can be sold to Fannie Mae and Freddie Mac in 2018.
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