In higher-cost areas, higher loan limits will be in effect. This will be the first increase in the baseline loan limit since 2006.
In most of the country, the 2017 maximum loan limit for one-unit properties will be $424,100, an increase from $417,000. – 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. If you want to take advantage of today's low interest rates and buy a home now before these fees increase, visit Credible to compare multiple mortgage lenders at once and choose the one with the best mortgage rate for you.Washington, D.C.
Non-QM loans are obtained through private lenders and can often be harder to get than a conventional loan since they do not have the security of government backing. Virgin Islands.īorrowers can get mortgages outside the conforming loan limits, known as non-QM loans, but they would not be backed by Fannie Mae or Freddie. This higher limit applies to cities with above-average median home prices and, due to special statutory provisions, also includes Alaska, Hawaii, Guam and the U.S. Because high-cost areas are given loan limits that are 150% of the conforming loan limit, the new 2022 limit rose to $970,800. This change occurred after the FHFA raised conforming loan limits by record amounts for 2022. In these areas, the FHFA will back mortgages up to $970,800 but will charge a higher fee to any new loan over the $647,200 limit. If you want to take out a home loan before these fees increase, you can visit Credible to see your personalized interest rate without affecting your credit score.įHFA SETS HIGHER BORROWING LIMITS FOR MORTGAGE LOANS IN 2022 High-cost areas to see a rise in feesĬertain high-cost areas, where 115% of the local median home values exceed the conforming loan limit, will see these new fees. "Today’s action represents another step FHFA is taking to strengthen the enterprises' safety and soundness and to ensure access to credit for first-time homebuyers and low- and moderate-income borrowers." "These targeted pricing changes will allow the enterprises to better achieve their mission of facilitating equitable and sustainable access to homeownership, while improving their regulatory capital position over time," FHFA Acting Director Sandra Thompson said in the Jan. The fees will be even higher for second home loans, with increases between 1.125% and 3.875%, also depending on the loan-to-value ratio. The higher a borrower’s down payment, the lower their fee will be. The increase will depend on the loan-to-value ratio, or the size of the mortgage compared to the value of the home.
At that time, high-balance loan fees will rise between 0.25% and 0.75%. It will soon be more expensive to take out a high-balance mortgage after the Federal Housing Finance Agency (FHFA) announced it was increasing the fees for these types of loans backed by Fannie Mae and Freddie Mac.īeginning April 1st, the new fees will be applied in high-cost areas where Fannie and Freddie-backed loans are above the baseline conforming loan limit. The Federal Housing Finance Agency (FHFA) announced a new fee for high-balance loans, but there are a few exceptions.