On November 23rd, 2016 the Federal Housing Finance Agency (FHFA) sent out a letter to all Fannie Mae Single Family Sellers. The letter confirmed an increase of conventional loan limits for 2017.
The FHFA has issued the maximum loan limits that will apply to conventional loans to be acquired by Fannie Mae in 2017.
The first mortgage loan limits are defined in terms of general loan limits and high-cost area loan limits. This is the first time the maximum loan limits have increased since 2006.
High-cost area loan limits are derived from median home prices estimated by the Federal Housing Administration (FHA) of the Department of Housing and Urban Development (HUD).FHA will permit a 30-day appeals period during which requests for individual area median home price increases will be evaluated. FHFA will issue a subsequent announcement if any individual high-cost area loan limit is increased as a result of the appeals process. Updates resulting from subsequent FHFA announcements will be posted on Fannie Mae’s website.
Loans subject to the high-cost area limits are referred to as high-balance loans and must comply with the high-balance loan requirements described in the Selling Guide.
Second Mortgage Loan Limits
Second Mortgage Loan Limits The loan limit for second mortgage loans for 2017 is $212,050 (or $318,075 in Alaska, Guam, Hawaii, and the Virgin Islands). As set forth in the Selling Guide, lenders must obtain approval from Fannie Mae to sell and service second mortgages. Fannie Mae is not currently acquiring second mortgages.
Application of the Limits Based on Original Loan Amount
Application of the Limits Based on Original Loan Amount All of the loan limits apply to the original loan amount of the mortgage loan, not to its balance at the time of purchase by Fannie Mae. Lenders are responsible for ensuring that the original loan amount of each mortgage loan does not exceed the applicable maximum loan limit for the specific area in which the property is located.
NOTE : As a reminder, a modified mortgage loan with an original loan amount that exceeds the current loan limits is not eligible for purchase by Fannie Mae, even though the balance may have been paid down at the time of the modification to or below the current applicable loan limit.
Effective Date The new limits are effective for whole loans delivered, and mortgage loans delivered into MBS with pool issue dates, on or after January 1, 2017.
Loan Limit GeoCoder
Are you curious if a property you’re interested in falls into a high-cost area? Fannie Mae provides visitors to their site with a convenient tool called the Loan Limit GeoCoder. It allows you to confirm the loan limit for a single address or for a group of addresses. Fannie Mae makes no representation, warranty or guarantee regarding the accuracy or completeness of the results.