Earlier this week The Federal Housing Finance Agency (FHFA) announced, for the second consecutive year, that conforming loan limits will increase in 2018. The previous conforming loan limit was $424,100 whereas the new loan limit for 1-unit properties, in most of the country, will now be $453,100. This represents a 6.8% increase from the 2017 limit. We also will see an increase in the high balance loan limit as well, which goes from $636,150 to $679,650. This increase will generally give us more room to work with when securing your mortgage.
Although, as of now, we are still waiting for the FHA and VA Loan Limits for 2018 to be announced. We anticipate they will follow the conforming loan limits and show an increase. However, we must wait for them to be formally announced before we can confirm.
Will this impact loans in process?
We evaluate the current loan pipeline to see if any loans fall between the 2017 and 2018 limits. If we see any transactions that can be moved from High Balance or Jumbo to Standard Balance, we will do so.
The increase is exciting news and we will be sure to follow-up with updated loan limits for FHA and VA once they are announced.
Use the links below to access FHFA, FNMA, and Freddie Mac’s announcements