FHFA Announces Increased Maximum Loan Limits for 2018


The Federal Housing Finance Agency (FHFA) recently announced that for the second year in a row, it will increase the maximum loan limit for Fannie Mae and Freddie Mac mortgages in 2018. With home costs rising in many areas, this increase could increase buying power by making it easier for prospective homebuyers to purchase a home with a conventional mortgage.

According to the FHFA, the 2018 maximum conforming loan limit will be higher in all but 71 counties or county equivalents in the U.S. than it was in 2017. Click here to view a list of loan limits by county.

In most of the U.S. the 2018 maximum conforming loan limit for one-unit properties will be $453,100, an increase from $424,100 in 2017. Loan limits will also be increasing in what the FHFA calls “high-cost areas,” where 115% of the local median home value exceeds the baseline loan limit. The new ceiling loan limit for one-unit properties in most high-cost areas will be $679,650 – or 150 percent of the base loan limit ($453,100). But, limits may vary slightly by location. For example, King County in the state of Washington is a high-cost area with a slightly lower limit of $667,000. So it’s important to check the limits specific to your county.

As of the writing of this article, the Federal Housing Association (FHA) has not announced any changes to FHA loan limits. However, that may change if history does in fact repeat itself. In 2017 the FHA increased FHA loan limits to align with conventional loan limits set for Fannie Mae and Freddie Mac. It remains to be seen if the same will happen this year. We’ll keep our eye on it.

If you have questions about the loan limits in your county and how you might benefit, contact a loan advisor to discuss your options.

By Amy Malloy

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