The Federal Housing Finance Agency increased the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac for the second time since the housing crisis.
The FHFA announced that it is increasing the conforming loan limits from $424,100 to $453,100 for 2018. 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.
The new ceiling loan limit for one-unit properties in most high-cost areas (like Los Angeles) will be $679,650 (which is 150% of $453,100) for one-unit properties in the contiguous U.S. In 2017, the high-cost loan limit was $636,150.
The conforming loan limits for Fannie and Freddie are determined by the Housing and Economic Recovery Act of 2008, which established the baseline loan limit at $417,000 and mandated that, after a period of price declines, the baseline loan limit cannot rise again until home prices return to pre-decline levels. The FHFA’s third quarter 2017 House Price Index report, which includes estimates for the increase in the average U.S. home value over the last four quarters, showed that house prices increased 6.8%, on average, between the third quarters of 2016 and 2017.
Example of Maximum Conforming Loan Limits For Los Angeles Contiguous Counties
Los Angeles $679,650
Santa Barbara $625,500
Riverside/San Bernardino $453,100
Conforming limits are also higher for 2-4 units
LOS ANGELES CA
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me.
Ron Henderson GRI, RECS, CIAS
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals
BRE #00905793 NMLS #310358
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth