Conforming Loan Limits 2017

Posted on

wall

Conforming Loan Limits Will Increase in 2017

On November 23, the Federal Housing Finance Agency (FHFA) announced that it would raise the baseline conforming loan limit for 2017. They are also increasing the limits for certain “higher-cost areas” that are above the baseline. This is in response to significant home-price gains that occurred during 2016.

In most counties across the country, the 2017 maximum conforming loan limit for a single-family home will be $424,100. (Riverside County included) That’s an increase of $7,100 from the 2016 baseline limit of $417,000. This is the first time federal housing officials have raised the baseline since 2006.

In higher-cost real estate markets, like Orange County, San Francisco and New York City, the limit for a single-family home loan can be as high as $636,150.  San Diego County is increasing to $ 612,950.

Anything above these caps is considered a jumbo mortgage and subject to more scrutiny and higher rates.

What Is a Conforming Loan?

A conforming home loan is one that meets certain guidelines set forth by Freddie Mac and Fannie Mae.

Freddie and Fannie are the two government-sponsored enterprises (GSEs) that purchase mortgages, bundle and securitize them, and then sell them to investors through Wall Street and other channels.

Looking to make a move?  Let us help…we are a phone call, text or email a way.  Gary and April Greer at 951-522-0518 or april@teamgreer.com

Print
Print

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s