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  • 2017 Loan Limits Announced

    December 5, 2016
  • The Federal Housing Finance Agency (FHFA) today announced that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2017 will increase. In most of the country, the 2017 maximum loan limit for one-unit properties will be $424,100, an increase from $417,000. This will be the first increase in the baseline loan limit since 2006. In higher-cost areas, higher loan limits will be in effect.

    The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price. However, after a period of declining home prices, HERA also made clear that the baseline loan limit could not rise again until the average U.S. home price returned to its pre-decline level. Until this year, the average U.S. home price remained below the level achieved in the third quarter of 2007 and thus the baseline loan limit had not been increased.

    Earlier today FHFA published its third quarter 2016 House Price Index (HPI), which makes clear that average home prices are now above their level in the third quarter of 2007. The expanded-data HPI value for the third quarter of 2016 was roughly 1.7 percent above the value for the third quarter of 2007, and thus the baseline loan limit will increase by that percentage.

    Great News!
    Conforming Loan Limits will
    INCREASE in 2017
                                  1-Unit                    2-Units                   3-Units                   4-Units
    San Diego         $612,950               $784,700                $948,500              $1,178,750
    Los Angeles       $636,150              $814,500                $984,525              $1,223,475
    San Francisco    $636,150              $814,500                $984,525              $1,223,475
    Sacramento      $488,750              $625,700                $625,700               $939,900
    Riverside            $424,100              $543,000                $656,350               $815,650