Standard Conforming Loan Limit Increases For The First Time In 10 Years
The Federal Housing Agency released its 2017 conforming loan limits for loans acquired by Fannie Mae and Freddie Mac. Lenders and borrowers got their wish as the standard conforming loan limit of $417k increased across the country for the first time since 2007. The FHFA announced that 2017 the new standard conforming loan limit would increase to $424,100. The FHFA determined that U.S. housing values for the third quarter of 2016 had finally surpassed pre-decline levels in the third quarter of 2007.
High Balance Conforming Loan Limit Increases In King County, Pierce County and Snohomish County
Along with the standard conforming loan limit increase, the High Balance Loan Limit increases in select high-cost counties across the country. Counties in the Seattle metro area and Denver metro area, will see increases in 2017 due to robust appreciation.
Due to increasing Seattle home prices, the High Balance Conforming Loan Limit will increase from $540,500 in 2016 to $592,250 in 2017. The increase in the loan limit will be applicable for all of King, Pierce, and Snohomish Counties. With the higher loan limits, significantly more of the homes for sale will now qualify for conforming financing in the Seattle area lending additional support to an already strong real estate market. San Juan County is the only other Washington County above the standard conforming loan limit at $483,000.
Eighteen Colorado counties will see High Balance Conforming Loan Limits above the standard $424,100 limit in 2017: Adams , Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park County will see a $493,350 high balance limit in 2017. Other Colorado counties with high balance limits include Boulder – $529,000, Eagle, Garfield and Pitkin – $636,150, Hinsdale – $427,800, Lake, Routt, San Miguell and Summit Counties – $625,500 and Hinsdale County at $427,800.
What Does the Loan Limit Increase Mean For Borrowers?
Higher loan limits create a refinance opportunity for some existing homeowners. These limits also increase the number of loan options for many new homebuyers. Generally High Balance Conforming or Jumbo Conforming loans have better rates and more flexible lending guidelines than Jumbo Mortgages. A big benefit is the down payment requirement on a High Balance Conforming loan is as low as 5% rather than 20-25%, which is common for Jumbo Loans.
For specific rates and costs please visit our online Interest Rate Quote tool or contact us at 425-401-8787 for a free consultation.