The Housing and Economic Recovery Act of 2008 (HERA) requires the Federal Housing Finance Administration (FHFA) – which oversees Fannie Mae and Freddie Mac – to make yearly adjustments to the maximum conforming loan limits to reflect changes in the hosing market, particularly median home prices.
It’s important to note that not all mortgage products will abide by the conforming limits set forth by the FHFA. Examples of different products which have different loan limits include:
1. Federal Housing Administration (FHA) loans
2. Veterans Affairs (VA) loans
3. U.S. Department of Agriculture (USDA) loans
4. Non-conforming loans (jumbo mortgages)
Based on recent information released from the FHFA, Fannie Mae and Freddie Mac’s conforming loan limits are set for the upcoming year and will remain unchanged in most parts of the country.
Even if you’re in the market looking to purchase a property that exceeds the maximum conforming loan limits in your areas, FHA loans allow up to $729,750 (in high-cost areas) and jumbo mortgage products products are available around the country.
Conforming loan limits for Fannie Mae and Freddie Mac have been unchanged since 2006 when the government raised the national limit to $417,000. Jumbo loans, or loans that exceed the conforming loan limit, are typically not backed by Fannie and Freddie.
Jumbo loans are not backed by the government and because of this, they often are subject to more stringent lender guidelines. For starters, buyers wishing to pursue a jumbo loan generally need great (often 680+) credit scores. Other requirements will vary on employment status, property guidelines and other factors. In addition, jumbo mortgages generally won’t come with lower down payment options. While FHA loans allow as little as 3.5% down and conventional financing only 5%, most jumbo loan products will require 20% of the purchase price.
It’s important to note that not all mortgage products will abide by the conforming limits set forth by the FHFA. Examples of different products which have different loan limits include:
1. Federal Housing Administration (FHA) loans
2. Veterans Affairs (VA) loans
3. U.S. Department of Agriculture (USDA) loans
4. Non-conforming loans (jumbo mortgages)
Based on recent information released from the FHFA, Fannie Mae and Freddie Mac’s conforming loan limits are set for the upcoming year and will remain unchanged in most parts of the country.
Even if you’re in the market looking to purchase a property that exceeds the maximum conforming loan limits in your areas, FHA loans allow up to $729,750 (in high-cost areas) and jumbo mortgage products products are available around the country.
Conforming loan limits for Fannie Mae and Freddie Mac have been unchanged since 2006 when the government raised the national limit to $417,000. Jumbo loans, or loans that exceed the conforming loan limit, are typically not backed by Fannie and Freddie.
Jumbo loans are not backed by the government and because of this, they often are subject to more stringent lender guidelines. For starters, buyers wishing to pursue a jumbo loan generally need great (often 680+) credit scores. Other requirements will vary on employment status, property guidelines and other factors. In addition, jumbo mortgages generally won’t come with lower down payment options. While FHA loans allow as little as 3.5% down and conventional financing only 5%, most jumbo loan products will require 20% of the purchase price.
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