Maximum Conforming Mortgage Loan Limits Went Up in 2017

After years of no change to the baseline limits for Fannie Mae/Freddie Mac backed loans, the federal government announced a raise.

The maximum conforming loan limits for mortgages--that is, the amount that Fannie Mae or Freddie Mac may willingly buy on the secondary market, which is the common next step for many mortgages--was raised for 2017. (This was announced in the November, 2016 press release from the Federal Housing Finance Agency (FHFA).)

In most parts of the United States, the baseline 2017 maximum loan limit for one-unit properties went from $417,000 to $424,100. This increase was the first such since 2006, a sign that housing prices have, on average, fully recovered nationwide.

In higher-cost cities and counties, (such as in New York City, Los Angeles, and San Francisco) even higher loan limits apply in 2017.

The ceiling loan limit, set for areas having the most expensive homes, is now $636,150 (calculated by taking 150% of the baseline $424,100) for one-unit properties in the contiguous United States. This amount also now serves as the baseline loan limit in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where actual loan limits may be higher in some locations.

Effective Date: January 1, 2017