New maximum loan limits were announced by the Federal Housing Finance Agency for conforming loans. The loans will vary by county, but for most of the United States, the 2017 maximum loan limit for one-unit properties will be $424,100, an increase from $417,000 (the level set back in 2006).
This will be the first increase in the baseline loan limit since 2006. In higher-cost areas, higher loan limits will be in effect. In high-cost areas the ceiling loan limit was raised to $636,150 (equivalent to 150 percent of the maximum baseline). High-cost areas are defined as areas where 115 percent of the local median home value exceeds the baseline loan limit.
Effective January 1, 2017, the maximum conforming loan limits will be:
The loan limits were raised as a result of higher home prices nationwide. Home prices were 1.7% higher in the third quarter of 2016 than during the same period in 2007, according to the FHFA’s Home Price Index. This prompted an equivalent 1.7% increase in the conforming loan limits.
To find out if you qualify for a conforming loan, and to get pre-approved, talk to one of our loan advisors today. We are well-versed in the changing laws and limits and can help walk you through the entire homebuying process.