The limit on “conforming” loans will rise in 2017 for the first time since 2006. This is good news for homebuyers and homeowners who have higher loan balances. A “conforming” loan is a mortgage that conforms to Fannie Mae and Freddie Mac guidelines. Conforming loans typically carry lower interest rates and better terms than “jumbo” mortgages… although this has not always been the case in recent years. The new conforming loan limits are as follows:
- $424,100 in most parts of the country… this is an increase of $7,100 vs. the 2016 limit of $417,000.
- Up to $636,150 in high cost areas, or even higher if you are financing a 2-4 unit property.
This also means that the new loan limit on FHA-insured mortgages will increase to $275,665, or even higher in high-cost areas or if you’re financing a 2-4 unit property.
Click here for more details on the new conforming loan limits.
Click here for more details on the new FHA loan limits.