2017 Conventional Loan Limits Increase

Fannie Mae has increased the max Conventional Loan limit for 2017.  This is the first Conventional loan limit increase since 2006.

Conventional Loan Limit Increases - 2017

Conventional Loan Limit Increases – 2017

As of January 1, 2017 the maximum allowable Conventional loan limit for Fannie Mae Conventional will be $424,100. (up from $417,000)

Here is a table direct from Fannie Mae’s website showing the new maximum loan limits.  The one that we most often deal with is the $424,100.   This is the limit that used to be $417,000.  Click Fannie Mae Loan Limit Increase for more information from Fannie Mae.

2017 Conventional Loan Limit Increase

2017 Conventional Loan Limit Increase









Loan Limit Increase – Tone More Than $7,000

The takeaway here is not so much that Conventional loan limits increased by $7,100 in 2017.  The bigger news is what this reveals about Fannie Mae’s tone about housing and lending.  Then, by extnension what this means for FHA, VA and more as those investors tend to follow Fannie’s lead (VA max loan amount adjusts directly with Fannie).

This is the first base maximum loan increase by Fannie since 2006.  However, take a look at the frequency in which loan amount limits were increased prior to 2006:

2000 – $252,700
2001 – $275,000
2002 – $300,700
2003 – $322,700
2004 – $333,700
2005 – 359,650
2006 – $417,000
2007 through 2016 – no change
2017 – $424,100

Common sense will point out the fact that home values decreased post 2006 and that was part of the reason for the stall in limit hikes.  However in Q1 of 2016 the average home value in the US per Zillow was $230,300.  As of Q2 2016 we are just below that average home price at $186,000.  This shows that Fannie is bullish on housing prices stepping back in with an increase before we even get back to the $230k mark that justified the last base max loan limit increase.

Stay tuned to see if FHA follows Fannie with their own loan limit increase as they typically do.  Please let me know if you have any questions!

By Jeremy House

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Jeremy is the Founder of The HOUSE Team and a Sr. Loan Officer/Branch Manager with PrimeLending. Over the past several years he has ranked in the top 1% of all loan officers nationwide and one of the top 200 loan officers in America. In the mortgage industry, the devil is in the details. Jeremy prides himself on being a student and an expert when it comes to everything mortgage related.

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