In response to rising home prices across the nation, the Federal Housing Finance Agency has increased Fannie and Freddie’s conforming loan limits for the second year in a row. The new loan limit will be $453,100 from the previous $424,100, an almost 7% increase over 2017. The increase will be effective for loans sold to these agencies after January 1st, 2018.
The change comes after market shifts which have caused median home values to “generally increase,” according to the FHFA. Additional adjustments have been made to high-cost areas, putting the new conforming limit for these locations at $679,650.
For our clients and business partners, this means more options for homebuyers going into next year. As prices continue to rise, higher limits may bring that perfect home in reach for borrowers for whom jumbo financing or other combinations of products were impossible or unideal. Easier, more affordable solutions for our clients is always great news!