We have great news for homeowners and homebuyers!

On November 28, 2017, the Federal Housing Finance Agency (FHFA) increased the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac from $424,100 to $453,100. This is great news for homeowners and homebuyers as it’s a true economic indicator that the housing market is in full recovery mode. Additionally, conforming loans are ideal for many buyers as it allows for low down payments.

These loan limits will also be increasing in what the FHFA calls “high-cost areas,” where 115% of the local median home value exceeds the baseline loan limit. Those limits will increase to $679,650 from $636,150. Check with your local HFG Licensed Mortgage Professional to see if you are located in a high-cost area and if you can benefit from this increase.

The increased limits above are for one-unit properties. Two- to four-unit properties have also increased. These increases take effect for loans closing on or after January 1, 2018.

For more information, please contact a Licensed Mortgage Professional at a Homeowners Financial Group location near you.


The conforming loan limits for Fannie and Freddie are determined by the Housing and Economic Recovery Act (HERA) of 2008, which establishes baseline loan limits and mandated that, after a period of price declines, the baseline loan limit cannot rise again until home prices return to pre-decline levels. But, as the FHFA noted, home prices are on the rise, which necessitates an increase in the conforming loan limit.

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