Bigger and Better Loan Limits in 2018!

January 11, 2018 By

For the second year in a row, the Federal Housing Finance Agency (FHFA) and Federal Housing Administration (FHA) have announced new maximum loan limits.

How this Helps You 

The FHFA acknowledged at the end of November 2017 that housing prices are on the rise, leading to a necessary rise in the limits as well. As home prices increase, the maximum loan limit needs to increase with it so homebuyers can borrow enough to cover the cost of their new home purchase. The new limits set by the FHFA reflect the increase in home prices across the country, making it easier for more borrowers to qualify for financing and achieve the goal of homeownership.

The History

FHFA: This is only the second time since 2006 that the conforming loan limits for loans purchased by Fannie Mae and Freddie Mac have risen. It indicates a strong recovery in the U.S. housing market, as conforming levels were mandated by the Housing and Economic Recovery Act of 2008 to remain at $417,000 until home prices returned to pre-crisis levels.

FHA: Now that housing prices are above pre-crisis level, all loan limits are increasing. The Federal Housing Administration (FHA) is required by the National Housing Act to maintain limits at 110% of median home prices. The decision to raise limits is a big jump for the FHA, which increased loan limits in only 188 counties in 2016, and in a total of 2,948 counties in 2017. This year, 3,011 counties across the US will benefit from higher loan limits.

Give me the Numbers!

FHFA: Baseline maximum conforming loan limits are increasing from $424,100 to $453,100 in 2018 for the contiguous 48 states. In high-cost areas, ceiling loan limits for one unit properties will increase from $636,150 to $679,650, which is 150% of $453,100.

For a map of maximum loan limits by county, click here. 

FHA: In high-cost areas, ceiling FHA loan limit for one-unit properties will increase from $636,150 to $679,650. The floor will also increase from $275,665 to $294,515 in 2018. As mandated by the Housing and Economic Recovery Act, these new limits represent 150% and 65% of the national conforming loan limits, respectively. Reverse mortgages, an FHA product, will also see an increase to $679,650 for all areas.

For a list of loan limits across the country, visit

We’re here to help keep you informed and ahead of the game. If you have any questions, please feel free to reach out.