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This year, median home values generally rose in high-cost areas. HERA sets the maximum loan limit as a function of the area median home value, while setting a "ceiling" on that limit of 150 percent of the baseline loan limit. In areas where 115 percent of the local median home value exceeds the baseline loan limit, the maximum area loan limit will be higher. The expanded-data HPI value for the third quarter of 2016 was roughly 1.7 percent above the value for the third quarter of 2007, and thus the baseline loan limit will increase by that percentage. home price remained below the level achieved in the third quarter of 2007 and thus the baseline loan limit had not been increased.Įarlier today FHFA published its third quarter 2016 House Price Index (HPI), which makes clear that average home prices are now above their level in the third quarter of 2007. home price returned to its pre-decline level. However, after a period of declining home prices, HERA also made clear that the baseline loan limit could not rise again until the average U.S. The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price. In higher-cost areas, higher loan limits will be in effect. This will be the first increase in the baseline loan limit since 2006. In most of the country, the 2017 maximum loan limit for one-unit properties will be $424,100, an increase from $417,000.
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– The Federal Housing Finance Agency (FHFA) today announced that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2017 will increase. HERA sets the maximum loan limit as a function of the area median home value, while setting a “ceiling” on that limit of 150 percent of the baseline loan limit, the FHFA said.Washington, D.C. The expanded-data HPI value for the third quarter of 2016 was 1.7 percent above the value for the third quarter of 2007, and thus the baseline loan limit will increase by that percentage. home price remained below the level achieved in the third quarter of 2007 and thus the baseline loan limit had not been increased.”Įarlier, the FHFA published its third quarter 2016 House Price Index (HPI), which makes clear that average home prices are above their level in the third quarter of 2007. “However, after a period of declining home prices, HERA also made clear that the baseline loan limit could not rise again until the average U.S. “The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price,” the FHFA stated. In higher-cost areas, higher loan limits will be in effect, according to a release by the FHFA. The Federal Housing Finance Agency (FHFA) announced that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2017 will increase.