How The Most Recent Change In Conforming Limits Impacts You

Dated: 12/13/2017

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Today I’m here with Terry Whitesell from Fairway Independent Mortgage Corporation to share some great news about interest rates and loan amounts for 2018.


The Federal Housing Finance Agency recently announced that they are increasing the baseline conforming limit for conventional loans for Fannie Mae and Freddie Mac.


The new limit is $453,100, which is about a $30,000 increase.


What does this mean for you?


If you plan on buying a home in 2018, you can look at higher priced homes and still come in under the jumbo loan limit.


"You can purchase a higher priced home without having to get a jumbo loan."



For example, you can buy a house for $477,000 with 5% down and come in at the minimum. Before, you could only afford a $446,000 home with 5% down to come in under the minimum.

This increase indicates that home prices will continue to rise. Based on data from the third quarter of 2016 to the third quarter of 2017, prices have increased by 6.8% over the last year, which is why the Federal Housing Finance Agency made this change.


The new conforming limit means that you can buy a home without having to get a jumbo loan. Jumbo loanstypically come with higher interest rates. It just makes more sense to stay within the conforming loan rate if you can.


If you have any questions for Terry, you can call him at 704-267-4086 or email him at [email protected] As always, if you have any real estate questions, just give me a call or send me an email. I would be happy to help you!


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