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.
Conforming Loan Limits Remain the Same
Realtors across the country welcomed news from the Federal Housing Finance Agency (FHFA) last week that current conforming loan limits will remain in effect until further notice. Mortgage and real estate professionals have been debating how an increase might affect the market for months. If the FHFA would have reduced the loan limits for Fannie and Freddie loans, borrowers might have been forced into higher-priced loans, aka jumbo loans, which contain higher rates and higher associated fees.
Conforming Loan Limits
A conforming loan limit is the maximum size for loans that can be purchased by government-sponsored enterprises Fannie Mae or Freddie Mac. Maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac will remain at $417,000 for one-unit properties in most areas of the country. For a complete list of maximum conforming limits for 2014 click here (Excel document).
High-Cost Area Limit Increases
2014 high-cost area loan limits have increased for 18 counties due to a high-cost area adustment or moving into a high-cost area. The high-cost area loan limits are established for each county and published on Fannie Mae’s website here.
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About Inlanta Mortgage
Headquartered in Brookfield, Wis., Inlanta Mortgage was established in 1993. The company has grown to 30 branches in 16 states and over 220 employees. The company is an agency approved lender for Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs.