Increases in the Max Conforming Loan Limits May Give Your Clients Access to More Expensive Properties
West Palm Beach, FL – It’s no secret that home prices have been on the rise. Current median home price have actually exceeded 2007, pre-recession values by 1.7% while properties in high-cost areas of the country exceed the baseline loan limit by 115%. As a result of these increases, the Federal Housing Finance Agency or FHFA has raised the baseline maximum conforming loan limit as required by the Housing and Economic Recovery Act of 2008 or HERA. These new limits set a cap on the size of mortgages that can be bought or guaranteed by Fannie Mae and Freddie Mac. These are the first such hikes by the FHFA in more than a decade.
2017 increases are as follows:
- From $417,000 to $424,100 for one-unit properties in the majority of the country
- From $625,500 to $636,150 for high-cost one-unit properties in the contiguous US
- Hawaii, Alaska, Guam, and the US Virgin Islands, currently have a baseline of $636,150 but limits have been raised for specific locations*
This is great news for your customers who’ve found rising home prices putting their hope of homeownership just out of reach. As always, AFN has the loan programs your customers need to afford their piece of the American Dream.
If there is anything we can do to further clarify these new loan limits or assist you and your clients in any other way, please don’t hesitate to contact us directly.
A list of the 2017 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here. A map showing the maximum loan limits across the country can be found here.
Ideal Lending is your premier home mortgage lender in Florida. At Ideal Lending your clients will work one-on-one with a dedicated mortgage professional who can explain loan programs and offer great mortgage rates to meet their financial goals.