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Fannie Mae Raises Conventional Loan Limits


The Federal Housing Finance Agency (FHFA) publishes annual conforming loan limits that apply to all conventional mortgages delivered to Fannie Mae, including general loan limits and the high-cost area loan limits. High-cost area loan limits vary by geographic location.  And “yes”… Sacramento, El Dorado, Placer and Yolo counties are considered “high-cost” areas thus benefiting from the higher limits.

The general loan limits for 2018 have increased and apply to loans delivered to Fannie Mae in 2018 (even if originated prior to 1/1/2018).

Here are the new limits for Sacramento, Placer, El Dorado and Yolo Counties:

  • 1 Unit: $517,500
  • 2 Units: $662,500
  • 3 Units: $800,800
  • 4 Units: $995,200

What this means…

For Buyers – If the loan a buyer needed to purchase their next home was over $488,950, that buyer was either in a non-conforming “Jumbo” loan or they were looking at getting a second mortgage along with the first.  Both come with higher rates and fees and are harder to qualify.  With the new limits, many buyers will be able to switch to a conforming loan.  That means lees fees, better rates and easier to meet qualification guidelines.

For Sellers – If your home is for sale in the $550,000 or higher, the number of potential buyers for your home just increased.   Easier qualification combined with lower fees and rates allow potential buyers to bump their price point.

For Homeowners – If you are currently in a Jumbo loan product, you should immediately contact a lender to see if it makes financial sense to re-finance to a conforming loan.  Here’s a link to the best in the business.

If you would like to know more about how these new limits apply to your specific situation, contact us today for a free no obligation consultation.  We’re here to help!

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