Real Estate 101: By the agent who lives here, plays here, owns here!
For the second year in a row, and the second time since 2006, the Federal Housing Finance Agency, FHFA, is increasing the conforming loan limits for Fannie and Freddie, the primary lending agencies, in 2018. The FHFA announced 11/28 that it is increasing the conforming loan limits from $424,100 to $453,100 for 2018. Prior to 2017, the limit was $417,000 for years. But, as the FHFA noted on Tuesday, home prices are on the rise, which necessitates a second straight yearly increase in the conforming loan limit. Loan rates for conforming loans are typically lower than jumbo or nonconforming loans.
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. Therefore, the new ceiling loan limit for one-unit properties in most high-cost areas 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. According to the FHFA, special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $679,650 for one-unit properties, but the FHFA notes that loan limits may be higher in some specific locations. You can search by state and county at www.fhfa.gov.
Some local Counties nearby: Grand $453,100. Summit $625,500. Routt $625,500. Clear Creek $529,000. Eagle $636,150. Park $529,000
Have questions about financing for a new home or refinance? I’ve been lending in Grand County and the state of Colorado for over 20 years! Wendy Paulus, Fairway Independent Mortgage Corp. 970-668-1188 office, 970-389-4516 mobile.
Needing more information or have an idea for a topic, give me a call!