Fannie-Freddie to Raise Conforming Loan Limits in 2017

Filed in Codes and Standards, Housing Finance by on November 23, 2016 3 Comments

Real Estate Finance

The Federal Housing Finance Agency (FHFA) today announced that the maximum baseline conforming loan limit for mortgage loans acquired by Fannie Mae and Freddie Mac in 2017 will increase to $424,100 from $417,000.  This will be the first increase in the conforming loan limit since it was raised to $417,000 in 2006.

The Housing and Economic Recovery Act of 2008 (HERA) established $417,000 as the baseline loan limit and mandated that after a period of price declines, the baseline loan limit would not be permitted to rise until home prices had returned to pre-decline levels.

The loan limit will rise 1.7% in 2017 because FHFA has determined that the average U.S. home value in the third quarter of this year increased 1.7% above its level in the third quarter of 2007.

Higher loan limits will be in effect in higher-cost areas as well. In areas where 115% of the local median home value exceeds the baseline loan limit, the maximum area loan limit will be higher. The new ceiling loan limit in high-cost markets will be $636,150 (150% of the $424,100) for single-family properties. The previous ceiling was $625,500.

Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $636,150 for single-family properties, but actual loan limits may be higher in some specific locations. A list of the 2017 maximum conforming loan limits for all counties and county-equivalent areas in the country may be found here.

Questions concerning the maximum conforming loan limits can be addressed to For additional information, contact Michelle Hamecs at 800-368-5242 x8425.

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Comments (3)

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  1. Share the information with your marketing and sales teams!
    Prepare your collateral material!
    Use this information in your sales presentations when discussing financing!
    Monitor Fannie Mae, FHFA, Freddie Mac and conventional financing rates, terms and companies for the best loans, locks, and service!
    Happy Thanksgiving!

  2. As a lender, this is always welcomed news to see the Conforming Loan Limits rise. I recall in over 38 years of banking when the limit was once apx. $97,800. It greatly enhances consumer’s purchasing power.

  3. Great news for Jumbo Buyers!

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