FHFA increases Confirming Loan Limits - InvestingChannel

FHFA increases Confirming Loan Limits

This was announced Wednesday.  From Jann Swanson at MortgageNewsDialy.com: FHFA Ups Conforming Loan Limit to $424,100

After leaving them in a holding pattern for 10 long years the Federal Housing Finance Agency (FHFA) has raised conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac. Separate loan limit announcements are expected shortly from FHA and the Veterans Administration.

The current loan limit, $417,000, has been in place since 2006. … the agency has raised conforming loan limits by 1.7 percent to $424,100. The new loan limits are effective as of January 1, 2017.

FHFA designates as so-called high-cost areas, markets where 115 percent of the local median home value exceeds the baseline loan limit. HERA sets the maximum loan limit as a function of the area median home value with a ceiling on the limit of 150 percent of the baseline limit. Under this formula, the new limit for the highest cost areas will have a ceiling of $636,150 in 2017.

A list of the maximum conforming loan limits for all counties and county-equivalent areas can be found at 2017 Conforming Loan Limits

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