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

Dated: 11/30/2017

Views: 85

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 [email protected].

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

Best Source For Hurricane Updates

Fact of life - it's not "if" but "when" storms will strike the coast.  When you are looking for information concerning the potential impacts of a pending storm, Facebook users can visit:Very

Read More

Are You Prepping Your Home For Resale

Even with it being a seller's market, it is still best to fix up your home before you put it on the market. One of the first places to start is in the heart of the home...the kitchen.If you

Read More

Freeport From A Busy Past At Turn Of Century To A Modern Day Hub

Lots of visitors through the years have passed through our tiny town of Freeport- not knowing that the town is really an incorporated city in Walton County and is rich with history.

Read More

Watercolor Craftsman Home

From the moment we entered 174 Needlerush Drive I was in awe of the reclaimed barn wood floors, the shiplap walls and ceilings, and the layout of this true craftsman home in Watercolor Florida. ;

Read More