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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