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December 3, 2017

Loan Limits Increase to $679,650 California and Arizona Conforming Loan Limits 2018 By County



Related imageConforming loan limits for Fannie/Freddie are going up in 2018 from $424,100 to $453,100. Note: Many investors will begin funding loans at the higher amount beginning Dec.15th.

If you have a loan amount between 417k and 453k contact Michael Hansen now at 855-955-SOEZ for a free, no hassle, rate drop quote.

The conforming loan limits for Fannie / Freddie are determined by the Housing and Economic Recovery Act of 2008, established the baseline loan limit at $417,000 & mandated, after a period of price declines, the baseline loan limit cannot rise again until home prices return to pre-decline levels.

Fannie and Freddie’s conforming loan limits stayed at $417,000 until last year, when the FHFA finally increased the loan limit to $424,100.

But, as the FHFA noted Tuesday, home prices are on the rise, which necessitates a second straight yearly increase in the conforming loan limit.

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.





According to FHFA, median home values “generally increased” in high-cost areas in 2017, which drove up the max. loan limits in many of those areas.

Therefore, the new ceiling loan limit for 1-unit properties in most high-cost areas will be $679,650, for one-unit properties in the contiguous U.S.

In 2017, the high-cost loan limit was $636,150.