Maximum Loan Limit Increase on Fannie, Freddie Mortgages Signals Healthy Market
RISMEDIA, Tuesday, November 29, 2016— The maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac will increase to $424,100 for most markets in 2017, the Federal Housing Finance Agency (FHFA) recently announced, indicating health in the housing market. The increase in the baseline loan limit, the first since 2006, came only after homes regained pre-recession value, as mandated by the Housing and Economic Recovery Act (HERA). The maximum loan limit will be higher in high-priced markets where 115 percent of the median home value exceeds the baseline loan limit; the ceiling on that limit is 150 percent of the baseline loan limit. That ceiling, according to FHFA’s announcement, will increase to $636,150 for one-unit properties in high-priced markets, with the potential for even higher limits in Alaska, Guam, Hawaii and the U.S. Virgin Islands. View the maximum loan limits by county here.