Orange County, CA –
Big news! The Federal Housing Finance Agency (FHFA) just announced their 2018 loan limits!
With a rise in home prices nation wide, the FHFA have increased the conventional loan limits for single unit properties. In most of the U.S., the 2018 maximum conforming loan limit for one-unit properties will be $453,100, an increase from $424,100 in 2017. That’s up 6.8 percent from 2017.
According to FHFA’s Home Price Index, home prices rose 6.8 percent, on average, between the third quarters of 2016 and 2017. As a result, the baseline maximum conforming loan limit in 2018 was adjusted to increase by the same percentage.
Median home values generally rose in high-cost areas in 2017, driving up the maximum loan limits in these areas. The new ceiling loan limit for one-unit properties in high-cost areas will be $679,650 — up from $636,150. A high balance mortgage loan is a conventional loan that is made in a designated high-cost loan area.
Also, loan limits increased for multi-unit properties. For a more in-depth look at multi-unit property loan limits please click here.
Helpful in higher priced areas-
Locations like Orange County, CA have a higher number of homes that are valued above the conforming loan limit. This increase by the FHFA means it will be easier as well as less expensive to finance a home loan with a balance below $679,650. Why? A loan that does not fall within the conventional loan limits is considered jumbo. Jumbo guidelines are generally more restrictive.
These new loan amounts can be originated beginning December 9, 2017 with funding/ fulfillments beginning after January 1, 2018. This is great news for those who would like to take advantage of the holiday housing market! So let’s get started today!
For assistance with market information and how it affects you and your home purchase, contact me.