Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

FHFA LogoThe Federal Housing Finance Agency (FHFA) announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018. In most of the U.S., the 2018 maximum conforming loan limit for one-unit properties will be $453,100, an increase from $424,100 in 2017. 

Loans acquired by Fannie Mae and Freddie Mac are commonly called “Conforming Loans”.

What is Baseline Limit?

The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.  According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017.  Therefore, the baseline maximum conforming loan limit in 2018 will increase by the same percentage. 

This means that every county in the country will at least have a loan limit of $453,100.

Some counties, designated as high-cost will have higher loan limits.

High-Balance Loan Limits:

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit.  The new ceiling loan limit for one-unit properties in most high-cost areas will be $679,650 — or 150 percent of $453,100.

These loans commonly called “High-balance Conforming Loans” apply to high-cost counties in states like California, New Jersey, and New York.

Counties in California (CA)with High-Balance Loan Limits of $679,650 (in alphabetical order):

  • Alameda
  • Contra Costa
  • Los Angeles
  • Marin
  • Napa
  • Orange
  • San Benito
  • San Diego (Max limit of $649,750)
  • San Francisco
  • San Mateo
  • Santa Clara
  • Santa Cruz
  • Ventura (Max limit of $672,750)

Counties in New Jersey(NJ) with High-Balance Loan Limits of $679,650 (in alphabetical order):

  • Bergen
  • Essex
  • Hudson
  • Hunterdon
  • Middlesex
  • Monmouth
  • Morris
  • Ocean
  • Passaic
  • Somerset
  • Sussex
  • Union

High-cost counties in other states will also be eligible for the higher loan limit of $679,650.

Some of those counties are:

  • Garfield and Pitkin in Colorado (CO)
  • Calvert, Charles, Frederick, Montgomery, Prince Geroge’s in Maryland
  • Pike in Pennsylvania
  • Arlington, Clarke, Culpeper, Fairfax, Loudoun, Prince William, Rappahannock, Spotsylvania, Stafford, Warren, Alexandria, Fairfax IND, Fall church, Fredericksburg, Manassas Park, Manassas in Virginia
  • King and Snohomish in Washington (High Balance Loan Limit of $667,000)

Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands.  In these areas, the baseline loan limit will be $679,650 for one-unit properties, but loan limits may be higher in some specific locations.

Multi-Unit Loan Limits:

For greater than 1-unit properties, the loan limits are higher.

  • Base Loan Limit for 2-Unit property is $580,150
  • Base Loan Limit for 3-Unit property is $701,250
  • Base Loan Limit for 4-Unit property is $871,450
  • High-balance Loan Limit for 2-Unit property is $870,225
  • High-balance Loan Limit for 3-Unit property is $1,051,875
  • High-balance Loan Limit for 4-Unit property is $1,307,175

Click on the link to look up Conforming Loan Limits for any county in the country – FullCountyLoanLimitList2018

Related Posts

  • 61
    Growing concerns about weak economic growth and Fed's indication of delaying rate hikes, plummeted the mortgage rates to the lowest levels in 16 months. Mortgage Banker's Association (MBA) reported the decline in rates across the board in its latest weekly mortgage applications survey released today. See the results below. The…
    Tags: loan, uncategorized
  • 59
    Mortgage Rates made the biggest one week jump this year and is now at the highest level in over 4 months. As part of Primary Mortgage Market Survey (PMMS), Freddie Mac reported that the 30 Year Fixed rate is now at the highest levels since May 1, 2014. Based on the…
    Tags: uncategorized
  • 59
    In April 2017, the median price for single-family, re-sale homes in Santa Clara county climbed to $1.16 million, which is a new all-time high. The median price for condos/townhomes crossed $700,000 which too, is a new all-time high. Median price means half the homes sold for a higher price and…
    Tags: $, uncategorized
  • 58
    In a momentous decision Federal Reserve (called Fed in short) decided to stop buying mortgage and treasury bonds. After 6 years of doing so, Fed finally decided its time to put a stop on it. So, how does it impact mortgage rates? But, before that - lets get a little bit…
    Tags: uncategorized
  • 55
    Schools play an important factor in home buying decision. Especially if you are planning to start a family or if you already have kids. If you want nothing but the best academic education for your kids, you may like to know about the top schools. Elementary schools fulfills the special…
    Tags: uncategorized