The Federal Housing Finance Agency (FHFA) recently announced a 2018 increase to maximum conforming loan limits for Fannie Mae and Freddie Mac.
By Deborah Reeves | A conforming loan is a loan that (surprise!) conforms to Fannie Mae and Freddie Mac guidelines. For homebuyers, one of the most impactful guidelines is the maximum conforming loan limit as loans above these limits—also known as Jumbo loans—typically have more rigorous credit requirements and relatively higher costs.
The Housing and Economic Recovery Act requires that the baseline conforming loan limit be adjusted each year for Fannie and Freddie to reflect the change in the average U.S. home price. Nationwide, the 2018 conforming loan limit for most counties—including Multnomah, Clackamas, and Washington—increased by $29,000 (or 6.8%) to $453,100.
This is good news in Portland’s pricier housing market. A recent Zillow estimate put the median price of homes listed in Portland at $429,000 (a Jumbo under 2017’s loan limit of $424,000). Buyers shopping in that price-range will no longer require a Jumbo mortgage and potentially save a lot of money when purchasing the very same property.
For more information, or to find out what this might mean for you, contact us today!
This is for informational purposes only and is not a commitment to lend. Any opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of Mortgage Trust. Terms and conditions of programs, products, and services are subject to change without notice. All loans are subject to credit and property approval. Certain restrictions may apply on all programs.
Mortgage Trust, Inc. is an Equal Housing Lender. NMLS 3250