Effective January 1, 2017, the Federal Housing Finance Agency (FHFA) will raise conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac. The conforming loan limit will be raised from $417,00 to $424,100 for single family homes and will be increased more in identified “high cost” counties.
Here are the 2017 limits for our local counties:
- Sacramento, Yolo, El Dorado & Placer – $488,750 (1 unit) | $625,700 (2 units) | $756,300 (3 unit) | $939,900 (4 unit)
- Sutter & Yuba – $424,100 (1 unit) | $543,000 (2 units) | $656,350 (3 unit) | $815,650 (4 unit)
This will be the first increase since 2006!
What this means for home buyers:
- More options for qualified borrowers
- Flexible terms for government backed mortgages
- Increased buying power with lower down payments
- A stronger housing market to buy and sell in
- Potential increased competition for homes
What this means for sellers:
- More buyers can qualify to purchase at a given price
- Should have a slightly inflationary effect on home prices
Contact us today for information about this new change and more!