Borrowers in certain high cost areas will be able to borrow more next year based on the Federal Housing Finance Agency’s (FHFA) designation of high-cost areas for 2016. Loan limits in 39 high-cost counties will increase in 2016, based on the conforming loan limit formula established under the Housing and Economic Recovery Act of 2008 (HERA).
Conforming loan limits – which restrict the size of mortgages Freddie Mac can purchase from lenders – remain unchanged from existing levels: a base limit of $417,000 for a 1-unit single-family property with a maximum for high-cost areas of $625,500. Actual high-cost limits vary by individual counties, see where yours stacks up.
Have a comment or question about this post? Email us to let us know what's on your mind.