New Conforming Mortgage Loan Increases for 2018

According to Fannie Mae and Freddie Mac, the two government sponsored corporations that buy home loans from lenders, the new one family mortgage limit for conventional conforming loans starting January 2018 will go from $424,100 to $453,100. As a point of reference, the loan limits held steady for about a decade at $417,000 until the beginning of last year. It is an indication of the increased value of today’s real estate market.

What this means for you:

If you are looking to purchase a home, that is the maximum amount you can borrow before the mortgage is considered a High Balance or Jumbo mortgage and higher rates kick in. This gives you an extra $29,000 to borrow. For some, it will give them extra buying power and a lower monthly payment for the extra amount of money.

FHA has increased their maximum mortgage in New York from $636,150 to $679,650 for government insured mortgages. Depending on your credit score, you can put as little as 3 percent down to purchase a home using one of these programs.

Lenders have generally relaxed their credit score and debt to income requirements from a few years ago. With rates expected to increase in 2018, if you are thinking of purchasing or refinancing to a lower rate or to consolidate your debt, now is the perfect time to do so.

Give me a call to discuss your personal situation.

Good News! Fannie and Freddie Increase Loan Limits

It has been more than a decade since Fannie Mae and Freddie Mac have increased their maximum conforming loan limits. This is good news, particularly if you are a first time home buyer. What it means is that if you are purchasing a one family home (or even if you are refinancing), the rate will not increase if your mortgage exceeds $417,000.

Here are the new loan limits for 2017 for the contiguous states, DC and Puerto Rico :


One Family: $424,100

Two Family: $543,000

Three Family: $656,350

Four Family: $815,650

Loans above these amounts are considered High Cost Loans. Limits for these loans can be found on the Fannie Mae website or by clicking here.

Fannie Mae and Freddie Mac buy mortgages from lenders, package them into securities and guarantee to investors the repayment of principal and interest. This keeps interest rates low in the United States.

For government loans, the FHA (Federal Housing Administration) will increase loan limits across most areas in the United States. Its loan limit “ceiling” in high-cost areas would rise to $636,150 from $625,500.


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