Great News Fannie Mae announces new higher loan limits for 2018

Maximum Loan Amount for 2018

Units Contiguous States, District of Columbia, and Puerto Rico Alaska, Guam, Hawaii, and the U.S. Virgin Islands
1                                                                                            $453,100                                                                      $679,650
2                                                                                           $580,150                                                                      $870,225
3                                                                                           $701,250                                                                      $1,051,875
4                                                                                           $871,450                                                                      $1,307,175

Loan limits to increase in 2018

This morning, Fannie Mae announced that it will raise its loan limits in 2018. That’s welcome news for those who want to buy next year, because so-called “conforming loans,” backed by Fannie Mae and Freddie Mac, often come with lower interest rates than loans classified as “jumbo” or “non-conforming.”

Most borrowers will get a higher limit in 2018

The new loan limit for borrowers in most parts of the US will be $453,100, up from 2017’s $424,100. That’s a 6.8 percent increase over the 2017 limit.

Loan limits are based on median home prices in the county or MSA (metropolitan statistical area) in which the property is located. For next year, all but 71 counties or MSAs will get an increase.

The new limits are effective for loans closed on or after January 1, 2018

Why do higher loan limits matter?

Higher conforming loan limits help make cheaper financing available to more borrowers. Fannie Mae and Freddie Mac are government-sponsored enterprises that buy loans that conform to their guidelines from lenders. Then, they sell them to investors.

Loans that meet these guidelines often cost lenders less to originate, and so these less-risky mortgages tend to come with better mortgage rates. And because so many lenders offer conforming loans, they are easier to find, shop for, and compare.

What are today’s mortgage rates?

Today’s jumbo and conforming rates are still very affordable. In fact, they have not changed much since October. This is good for anyone planning to buy soon.

Call Connect Mortgage Corp for rate quote !

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