FHFA Increases Conforming Loan Limits

Federal Housing Finance Agency  (FHFA)  announced  that  it  will  increase  the  2018  conforming  loan  limits  for  mortgages  acquired by  Fannie  Mae  and  Freddie  Mac  to  $453,100 on one-unit properties and a cap of $679,650 in high-cost areas. The  previous loan limits were $424,100 and  $635,150, respectively.  The  conforming  loan  limit  determines the maximum size of a mortgage that government-sponsored enterprises (GSEs)  Fannie  Mae  and  Freddie  Mac  can buy or “guarantee.” Non-conforming  or “jumbo loans” typically have tighter  underwriting standards and carry higher mortgage  interest  rates  than  conforming loans.

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