The 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.

Baseline Limit

The Housing and Economic Recovery Act (HERA) requires the baseline conforming loan limit be adjusted each year for both Fannie Mae and Freddie Mac, this change reflects the change in the average US home price. The FHFA published its third quarter 2017 House Price Index (HPI) report, which includes estimates for the increase in the average US home value over the last four quarters. 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.

High-Cost Area 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. HERA establishes the maximum loan limit in those areas as a multiple of the area median home value, while setting a “ceiling” on that limit of 150 percent of the baseline loan limit. Median values generally increased in high-cost areas in 2017, driving up the maximum loan limits in many areas. The new ceiling loan limit for a one-unit property in most high-cost areas will increase to $679,650, or 150% of the baseline limit of $453,100.

Central Coast High-Cost Limits

Many areas of California will continue to be considered high-cost in 2018.  The maximum loan limit will increase in San Luis Obispo County from $586,500 to $615,250.  The limit in Santa Barbara County will remain unchanged at $625,500.  The Ventura County loan limit will increase from $636,150 to $672,750.

  • For a list of the 2018 maximum loan limits for all counties and county-equivalent areas in the U.S. click here.
  • For a map showing the 2018 maximum loan limits across the U.S. click here.