2017 Conforming Loan Limits Increase

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Bank Statement Mortgage Loan
November 29, 2016
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FHA W-2 Only Mortgage Loan
December 1, 2016
2017 Conforming Loan Limits Increase

2017 Conforming Loan Limits Increase: Home Prices Increasing

There is great news coming out for potential home buyers starting in 2017 and that is the fact that the 2017 Conforming Loan Limits Increase are set for their first increase since 2006.  The old ceiling of $417,000 will be replaced by a 1.7% increase to $424,100.  This will be the first time in 10 years that potential buyers have a little more buying power while trying to stay to Conforming Loan Limits.  If you don’t remember or are curious, Conforming Loans are Conventional Loans that need to conform to the Fannie Mae and Freddie Mac.  It was just announced by the Federal Housing Finance Agency or FHFA that the increase would go into effect and the reasoning is as follows: For the first time since pre-recession levels, the average U.S. home price has reached a new high and this level hasn’t been seen since Q3 of 2007.  If you think about it, the Great Recession took 10+ years to regain the loss in prices that were seen.  This is the first time that home values are finally at pre-decline levels.  After FHFA completed its third quarter 2016 House Price Index, it was also determined that in all but 87 counties in the United States would warrant an increase in the loan ceiling.  The high-price home areas have also seen price increases as well with the high cost areas increasing from $625,500 to $636,150.  With the rapidly increasing home prices, this will help first-time home buyers afford a little more than they could initially.

2017 Conforming Loan Limits Increase: First Mortgage Loan Limits

As illustrated by the 2 spreadsheets below, you can see the full roll-out of the 2017 Conforming Loan Limits Increase.  Now, keep in mind this is only for first mortgages on homes and has nothing to do with second mortgages or equity lines.

Units General Loan Limits
Contiguous States, Alaska, Guam,
District of Columbia, Hawaii, and U.S.
and Puerto Rico Virgin Islands
One $424,100 $636,150
Two $543,000 $814,500
Three $656,350 $984,525
Four $815,650 $1,223,475
Units High-Cost Area Loan Limits
Contiguous States, Alaska, Guam,
District of Columbia, Hawaii, and U.S.
and Puerto Rico Virgin Islands
One $636,150 $954,225
Two $814,500 $1,221,750
Three $984,525 $1,476,775
Four $1,223,475 $1,835,200

 

2017 Conforming Loan Limits Increase: Conforming, Jumbo, and Non-QM Loans

When you are looking to obtain mortgages that are higher in values, or via alternate qualifications Conventional Loans or Conforming Loans always offer much easier credit requirements to obtain than Jumbo Mortgages as an example, and hopefully the 2017 Conforming Loan Limits Increase will help some buyers in going the Conforming Loan route rather than the Jumbo Mortgage route.  Jumbo mortgages do not have set lending requirements and are normally up to the specific lender for what they will require for approval.  Under normal circumstances Jumbo Mortgages will require 720+ credit and a debt to income ratio of below 40%.  Lenders feel that the credit profile needs to be spotless in order to take the risk on Jumbo Mortgages.

Always remember that there are options for you if you cannot qualify for a Conforming Loan and able to take advantage of the 2017 Conforming Loan Limits Increase.  Here at loanconsultants.org, we offer Non-QM Loans via Bank Statement Loans which are geared towards the self-employed borrowers.  With these loans, as long as you have 30% down and a minimum 640 FICO you can obtain a loan without tax returns, paystubs, or W-2s.  If you feel you can take advantage of the 2017 Conforming Loan Limits Increase or Non-QM Loans, then please give me a call today at 888-900-1020. You can also apply through my website at www.loanconsultants.org or email me directly at contact@loanconsultants.org.  Always remember, electronic communication is the best way to get a hold of me and I will contact you right away.  I am available for you 7 days a week, nights, weekends, and holidays!

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