New Maximums For Loans With Fannie Mae And Freddie Mac Open Up More Opportunites To Home Buyers

Dated: 11/30/2017

Views: 47

This is a crucial announcement that allows home buyers more options in loan needs that would reach $453K. the increase is almost 30K from last year's loans provided by Freddi Mac Or Fannie Mae.  The information below comes directly from the release from the Department.  the 2018 maximum conforming loan limit for one-unit properties will be $453,100, an increase from $424,100 in 2017.  

Baseline limit

The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.  Earlier today, FHFA published its third quarter 2017 House Price Index (HPI) report, which includes estimates for the increase in the average U.S. home value over the last four quarters.  According to FHFA's seasonally adjusted, expanded-data HPI, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017.  Therefore, the baseline maximum conforming loan limit in 2018 will increase by the same percentage. 

High-cost area limits

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit the maximum loan limit will be higher than the baseline loan limit.  HERA establishes the maximum loan limit in those areas as a multiple of the area median home value, while setting a "ceiling" on that limit of 150 percent of the baseline loan limit.  Median home values generally increased in high-cost areas in 2017, driving up the maximum loan limits in many areas.  The new ceiling loan limit for one-unit properties in most high-cost areas will be $679,650 — or 150 percent of $453,100. 

For more information and Questions about the 2018 conforming loan limits can be addressed to LoanLimitQuestions@fhfa.gov.

Blog author image

Kim Maxwell

Kimberly Maxwell, a fourth generation in Walton County, knows the community and its wonderful lifestyle firsthand. Although she was born in NYC, moved to NC in her high school and college years, her m....

Latest Blog Posts

JAGUARUNDI

Driving along 30A after dark is always challenging. Because of lighting restrictions the area is usually pitch-black, leaving one grateful that the deer grazing just inches off the roadway actually

Read More

Moving To The Beach Is Todays Reality For So Many

WALTON COUNTY, Fla. (WJHG/WECP) - One local area is booming. So much so, the U.S. Census Bureau has put it on the list for the Fastest Growing Counties in the Nation.Walton County seems to

Read More

House Prices Are Simply A Matter Of Supply Demand

Why are home prices still rising? It is a simple answer. There are more purchasers in the market right now than there are available homes for them to buy. This is an example of the theory of

Read More

WORLD WAR II AND TOPSAIL HILL STATE PARK CONTINUED

I had the opportunity to attend the Topsail Talks Educational Discovery Series: WWII Bombs Away Coffeen Nature Preserve at Topsail Hill Preserve State Park...What a mouthful!;

Read More