Increase in Maximum Conforming Loan Limits
The Federal Housing Finance Agency (FHFA) recently raised the conforming loan limit from $417,000 to $424,100, marking the first increase since the year 2006. In certain high-cost counties, the loan limit will increase from $625,500 to $636,150.
“The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price,” read a statement from FHFA. These changes and rising home prices indicate that the housing market has returned to pre-recession growth.
Best of all, these changes could help borrowers afford homes in more expensive areas or get more home for their money. Increasing the loan limit means that more homebuyers have the option of choosing a conventional loan over a jumbo loan which could result in more favorable loan terms.
These changes will only affect loans that close on or after January 1, 2017. However, since Inlanta Mortgage is a direct lender with Fannie Mae and Freddie Mac, we can start taking your loan applications or lock in your rate today! Contact your local Inlanta Mortgage representative for more details.
Edited: Original post was modified with updated and expanded information on 12/5/2016.
What are Conforming Loans?
Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. Freddie Mac and Fannie Mae are government-sponsored enterprises (GSEs) that buy mortgages on the secondary market, pool them and sell them as a mortgage-backed security to investors on the open market. The Office of Federal Housing Enterprise Oversight (OFHEO) sets the criteria on what constitutes a conforming loan limit that Fannie Mae and Freddie Mac can buy.
What are the 2013 Conforming Loan Limits?
On November 29th, the Federal Housing Finance Agency (FHFA) announced that conforming loan limits for Fannie Mae and Freddie Mac would remain unchanged.
For 2013, the maximum conforming loan limit will remain $417,000 for one-unit properties in much of the country. For a list of the 2013 conforming loan limits for all counties and county-equivalent areas in the country click here.
What are Non-Conforming Loans?
Non-conforming loans are also known as jumbo loans because they exceed the conforming limits set by the OFHEO. Non-conforming loans typically have higher rates associated with them because they are not as easy to sell in the secondary market. Since they are harder to sell in the secondary market, they cost consumers more money in the form of higher interest rates.
Inlanta Mortgage licensed mortgage loan originators are available to answer your questions about home financing and determine the best option for your specific situation. Click here to find a licensed mortgage loan officer near you.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.
Inlanta Mortgage is a multi-state mortgage banker headquartered in Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.