{"id":4927,"date":"2016-11-25T12:14:02","date_gmt":"2016-11-25T12:14:02","guid":{"rendered":"http:\/\/teammovemortgage.com\/?p=4927"},"modified":"2020-07-13T22:33:02","modified_gmt":"2020-07-13T22:33:02","slug":"conforming-loan-limits","status":"publish","type":"post","link":"https:\/\/teammovemortgage.com\/blog\/conforming-loan-limits\/","title":{"rendered":"Conforming Loan Limits Increased for First Time Since 2006"},"content":{"rendered":"<p>Fannie Mae &amp; Freddie Mac will now offer bigger home loans effective January 1, 2017!\u00a0\u00a0The Federal Housing Finance Agency (FHFA) has announced the new maximum loan limits for the United States.\u00a0 Conforming loan limits have not increased in 11 years because of the downturn and comeback of the real estate market.\u00a0 We have been lulled into $417,000 being the constant limit.<\/p>\n<h2>So What Does an Increase in the Conforming Loan Limit Do?<\/h2>\n<p>Most conventional loans are underwritten to Fannie Mae &amp; Freddie Mac guidelines.\u00a0\u00a0Fannie and Freddie&#8217;s\u00a0main goal is<img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-4939 size-medium\" src=\"https:\/\/teammovemortgage.com\/blog\/wp-content\/uploads\/2016\/11\/houses-with-arrow-going-up-Copy-Copy-300x199.jpg\" alt=\"2017 conforming loan limits\" width=\"300\" height=\"199\" \/> to\u00a0offer affordable loans.\u00a0 Conversely, going above these limits puts a borrower into a jumbo loan category.\u00a0 <a href=\"http:\/\/teammovemortgage.com\/jumbo\/\"><span style=\"text-decoration: underline;\">Jumbo loans<\/span><\/a> typically are more strict on\u00a0borrower and property\u00a0qualifications.\u00a0 Yet <a href=\"http:\/\/teammovemortgage.com\/jumbo\/\"><span style=\"text-decoration: underline;\">jumbo loans<\/span><\/a> serve a great purpose as well.\u00a0 Over time, housing prices have increased so the limits had to increase eventually.\u00a0 Basically the increase allows 95% financing to a price just over $446,000!\u00a0 Also an 80% loan could go to $530,125!\u00a0 Borrowing against a duplex, triplex, or quadruplex\u00a0even higher limits as you see below.<\/p>\n<h2>New 2017 Conforming Loan Limits<\/h2>\n<p>The following contains the general loan limits for the U.S.<\/p>\n<p>[av_button_big label=&#8217;Click here for the high balance counties&#8217; description_pos=&#8217;below&#8217; link=&#8217;manually,https:\/\/teammovemortgage.com\/blog\/wp-content\/uploads\/2016\/11\/2017-high-balance-loan-limits.xlsx&#8217; link_target=&#8217;_blank&#8217; icon_select=&#8217;no&#8217; icon=&#8217;ue800&#8242; font=&#8217;entypo-fontello&#8217; custom_font=&#8217;#ffffff&#8217; color=&#8217;theme-color&#8217; custom_bg=&#8217;#444444&#8242; color_hover=&#8217;theme-color-subtle&#8217; custom_bg_hover=&#8217;#444444&#8242;]<br \/>\nCounties for NC, SC, VA, TN, GA<br \/>\n[\/av_button_big]<\/p>\n<p>[av_table purpose=&#8217;pricing&#8217; caption=&#8221; responsive_styling=&#8217;avia_responsive_table&#8217;] [av_row row_style=&#8217;avia-heading-row&#8217;][av_cell col_style=&#8217;avia-center-col&#8217;]Number of units[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]Contiguous states, DC, PR[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]Alaska, Hawaii, Guam, V.I.[\/av_cell][\/av_row] [av_row row_style=&#8221;][av_cell col_style=&#8217;avia-center-col&#8217;]1[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$424,100[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$636,150[\/av_cell][\/av_row] [av_row row_style=&#8221;][av_cell col_style=&#8217;avia-center-col&#8217;]2[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$543,000[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$814,500[\/av_cell][\/av_row] [av_row row_style=&#8221;][av_cell col_style=&#8217;avia-center-col&#8217;]3[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$656,350[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$984,525[\/av_cell][\/av_row] [av_row row_style=&#8221;][av_cell col_style=&#8217;avia-center-col&#8217;]4[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$815,650[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$1,223,475[\/av_cell][\/av_row] [\/av_table]<\/p>\n<h2>New 2017 High Balance Conforming Loan Limits<\/h2>\n<p>The high cost area limits are set for each county.<\/p>\n<p>[av_table purpose=&#8217;pricing&#8217; caption=&#8221; responsive_styling=&#8217;avia_responsive_table&#8217;] [av_row row_style=&#8217;avia-heading-row&#8217;][av_cell col_style=&#8217;avia-center-col&#8217;]Number of units[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]Contiguous states, D.C., PR[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]Alaska, Hawaii, V.I.[\/av_cell][\/av_row] [av_row row_style=&#8221;][av_cell col_style=&#8217;avia-center-col&#8217;]1[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$636,150[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$954,225[\/av_cell][\/av_row] [av_row row_style=&#8221;][av_cell col_style=&#8217;avia-center-col&#8217;]2[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$814,500[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$1,221,750[\/av_cell][\/av_row] [av_row row_style=&#8221;][av_cell col_style=&#8217;avia-center-col&#8217;]3[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$984,525[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$1,476,775[\/av_cell][\/av_row] [av_row row_style=&#8221;][av_cell col_style=&#8217;avia-center-col&#8217;]4[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$1,223,475[\/av_cell][av_cell col_style=&#8217;avia-center-col&#8217;]$1,835,200[\/av_cell][\/av_row] [\/av_table]<\/p>\n<h2>Conventional Loan Strategies<\/h2>\n<p>There are many conventional strategies we use to help borrowers buy a home.\u00a0 Keep in mind that conforming loans allow as little as 3% down payment.\u00a0 Foremost, buyers may finance a primary residence, second home, or investment property.\u00a0 Furthermore, when buyers invest 20% or more down payment, there is no PMI required.\u00a0\u00a0This sizable down payment reduces risk to lenders.\u00a0 Therefore the insurance is not required.\u00a0 Additionally buyers even have the ability to pay their own taxes and insurance.<\/p>\n<h4>PMI Strategies<\/h4>\n<p>For buyers with less than 20% down payment, we provide key\u00a0PMI strategies.\u00a0 PMI, private mortgage insurance, <img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-4942\" src=\"https:\/\/teammovemortgage.com\/blog\/wp-content\/uploads\/2016\/11\/private-mortgage-insurance-Copy-1-300x200.jpg\" alt=\"private mortgage options\" width=\"300\" height=\"200\" \/>insures the lender against default.\u00a0 So this allows buyers to bring less than 20% to closing if desired.\u00a0 To start, we offer <a href=\"http:\/\/teammovemortgage.com\/blog\/2015\/05\/22\/pmi-strategies-that-can-save-you-money-over-fha\/\"><span style=\"text-decoration: underline;\">traditional monthly PMI<\/span><\/a> which has lower up-front costs.\u00a0 Next, <a href=\"http:\/\/teammovemortgage.com\/blog\/2015\/05\/22\/pmi-strategies-that-can-save-you-money-over-fha\/\"><span style=\"text-decoration: underline;\">single premium PMI<\/span><\/a> keeps a payment lower yet has more cost up-front.\u00a0 Like FHA loans, we have <a href=\"http:\/\/teammovemortgage.com\/blog\/2015\/05\/22\/pmi-strategies-that-can-save-you-money-over-fha\/\"><span style=\"text-decoration: underline;\">split premium PMI<\/span> <\/a>that is in between the first options.\u00a0 On conforming loans, PMI may be cancelled at a certain level.\u00a0 <a href=\"http:\/\/teammovemortgage.com\/blog\/2015\/05\/22\/when-does-pmi-stop-on-fha-usda-and-conventional-mortgage-loans\/\"><span style=\"text-decoration: underline;\">See when PMI cancels on conventional loans<\/span><\/a>.\u00a0 Finally,<a href=\"http:\/\/teammovemortgage.com\/blog\/2015\/05\/22\/pmi-strategies-that-can-save-you-money-over-fha\/\"><span style=\"text-decoration: underline;\"> lender paid PMI<\/span> <\/a>has a small increase in rate to cover the PMI which often lowers the house\u00a0payment.\u00a0\u00a0Even though PMI\u00a0works well, we can avoid PMI by offering a combo loan for well qualified buyers.\u00a0 These combine up to 95% but since the first mortgage is 80% or less, buyers avoid PMI and may even waive escrows.<\/p>\n<h4>Other Key Strategies<\/h4>\n<p>Not every scenario is cookie cutter.\u00a0 So there are some other outside the box ways of financing a home.\u00a0 For instance, a co-signor who will not live in the home is allowed with as little as 5% down.\u00a0 A <a href=\"http:\/\/teammovemortgage.com\/blog\/2015\/02\/22\/problems-with-debt-ratio-fha-and-conventional-programs-that-allow-co-borrowers-that-dont-live-in-the-property\/\"><span style=\"text-decoration: underline;\">non-occupying co-borrower<\/span> <\/a>is used to help buyers who lack sufficient income to qualify.\u00a0 Converting a current VA or FHA loan into a rental property loan is common.\u00a0 Refinancing a residence to a conventional rental property loan allows a buyer to use VA or FHA again for a new primary.\u00a0 Also there are times that using only 1 year of tax returns is needed.\u00a0 Conventional loans may allow for commission salespeople or self employed to qualify with only the <a href=\"http:\/\/teammovemortgage.com\/blog\/2016\/05\/03\/commission-income-for-fha-loans\/\"><span style=\"text-decoration: underline;\">most recent tax return<\/span><\/a>.<\/p>\n<p>Take advantage of these loan limit increases and call us today.<\/p>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Fannie Mae &amp; Freddie Mac will now offer bigger home loans effective January 1, 2017!\u00a0\u00a0The Federal Housing Finance Agency (FHFA) has announced the new maximum loan limits for the United States.\u00a0 Conforming loan limits have not increased in 11 years because of the downturn and comeback of the real estate market.\u00a0 We have been lulled [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":4939,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[87,33,61,17,19],"tags":[799,800,539,801,802,540],"class_list":["post-4927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data","category-frequently-asked-questions","category-market-updates","category-products","category-recent-changes","tag-2017-loan-limits","tag-conforming-loan-limits","tag-fannie-mae","tag-federal-housing-finance-agency","tag-fhfa","tag-freddie-mac"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Conforming Loan Limits for 2017 Increased for First Time Since 2006<\/title>\n<meta name=\"description\" content=\"Conforming Loan Limits for Fannie Mae, Freddie Mac, &amp; VA loans offer great 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