FHFA announces 2016 conforming loan limits

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The Federal Housing Finance Agency announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2016.

Despite some earlier predictions that the loan limits would rise for 2016, the FHFA said that the conforming loan limits will remain unchanged for much of the country.

For most of the country, the Fannie Mae and Freddie Mac loan limit will remain at $417,000 for one-unit properties (or single-family homes) in 2016.

According to the FHFA, the Housing and Economic Recovery Act of 2008 established the baseline loan limit at $417,000 and mandated that, after a period of price declines, the baseline loan limit cannot rise again until home prices return to pre-decline levels.

The FHFA said that the $417,000 loan limit will stay the same for 2016 because FHFA has determined that the average U.S. home value in the third quarter of this year remained below its level in the third quarter of 2007.

But in 39 “high-cost” counties, the FHFA said that the conforming loan limit will be increased for 2016.

Although the baseline loan limit will be unchanged in most of the country, the FHFA said that 39 specific high-cost counties that saw home values increase over the last year will have their maximum conforming loan limit for 2016 increased.

To learn more go to:

http://www.housingwire.com/articles/35693-fhfa-announces-2016-conforming-loan-limits