Maximum Conforming Loan Limits For Fannie Mae & Freddie Mac Will Increase In 2017

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Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

FHFA announced today the Maximum Conforming Loan Limits For Fannie Mae & Freddie Mac Will Increase In 2017.  The new posted maximum conforming loan limits for 2017,  will increase by 1.7%.  The new limits will apply to loans delivered and or closed after January 1, 2017.

However, the new maximum conforming loan limits will not be implemented in to Desktop Underwriting (DU) for Version 9.3 and Version 10.0 until the weekend of December 10, 2016.  So this means the earliest a Fannie Mae backed loan can be originated above $417,000 is December 12, 2016. 

This is the first increase in the base loan limit since 2006.

Presently the Conforming Loan Limit is $417,000, and has been the Conforming Loan Limit for single family properties since 2006.  Several attempts have been made in recent years, as was the case two years ago, to lower this limit.  But none have succeeded, and the Conforming Loan Limit has remained the same until now. 

In 2008 The Housing & Economic Recovery Act (HERA) gave Fannie Mae and Freddie Mac the authority to set conforming loan limits, but required Fannie Mae and Freddie Mac to make annual adjustments to reflect annual changes in the national average of home prices. 

Raising the maximum conforming loan limit is good news and a step in the right direction in achieving a housing recovery.  Raising the maximum conforming loan limit is a start in removing some of the barriers to a troubled Housing Market.  Raising the maximum conforming loan limit, even though it is a minor one, will increase the ability to obtain financing on higher price homes, and increase the sales of these homes.  The hope is for the Housing Market to rebound nationwide as it already has in some parts of the Country.

There are parts of the county the new maximum conforming loan limits may be higher or lower than the chart above.  Click This Link for a map of the new maximum conforming loan limits across the country.

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Adam R. Cohn 11/25/2016 06:02 AM
  2. Jenniffer Lee 04/01/2017 06:03 AM
Topic:
Mortgage / Finance
Location:
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Groups:
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Rainmaker
2,562,168
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George great information for all to be aware of, I wonder why they did not include the California Market in the higher numbers? Anyway have a Happy Thanksgiving if we do not connect, Endre

Nov 23, 2016 06:04 PM #1
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, George...thanks for sharing this industry information. Learning what's new in our industry is one of the many things I love about AR. 

Nov 23, 2016 06:48 PM #2
Rainmaker
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Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Thank you for this timely information, George...I had not heard of it yet.  Happy Thanksgiving!

Nov 23, 2016 07:11 PM #3
Rainer
121,332
Shahar Hillel
Augusta Financial Inc. - Stevenson Ranch, CA
Mortgage Consultant, Loan Officer.

Good information.

Happy Thanksgiving.

Nov 24, 2016 10:24 PM #4
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

George Thanks for sharing this important information.

Nov 30, 2016 11:56 PM #5
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