Higher Loan Limits Coming Jan. 1

On Jan. 1, buyers will be able to get much larger mortgages, whether they’re applying for conventional or 

FHA-backed loans. Each year,Fannie Mae and Freddie Mac adjust their limits for conventional, conforming loans based on changes 

in median home prices. For 2018, the companies are increasing loan limits nearly 7 percent, to a maximum loan amount of $453,100. That’s up from $424,100. In the country’s most expensive markets, such as San Francisco and New York, loans can go as high as $679,650. (Special rules apply in Alaska, Hawaii, and some U.S. territories, which are eligible for even higher limits.)

View a county-by-country chart of 2018 Fannie, Freddie loan limits.

Most home loans are conforming, conventional loans, so the higher limits should help most borrowers. Conventional loans that exceed these limits are considered jumbo loans and aren’t backed by the federal government. That can make them pricier to get.

The Federal Housing Administration is statutorily required to peg its loan limits to Fannie and Freddie’s limits, so it will also start backing higher loans starting Jan. 1. Its loan limits are the same as those of Fannie Mae and Freddie Mac: $453,100 in most areas and $679,650 in high-cost areas

—REALTOR® Magazine