The Federal Housing Finance Agency (FHFA) has issued new loan limits for 2018. These limits govern how large a Conventional loan can be to be approved under Fannie Mae and Freddie Mac Guidelines. The first mortgage loan limits are defined in terms of general loan limits and high-cost area loan limits. The limits are increasing in 2018.
The new base loan limit in most of the country will be $453,100. In 2017 it was just $417,000 and this year it has been $424,100. This is a 6.8% increase, based on real estate appreciation nationwide. Almost every county in the United States will see a loan limit increase.
Certain areas are eligible for High Balance Conforming loans over the $453,100 limit. It can be as high as $679,650 in higher cost counties for 1 unit properties. For Placer, Sacramento, El Dorado, and Yolo Counties this limit is now $517,500. High Balance loans have slightly different guidelines than regular Conventional loans, and may have different interest rates as well, but serve a real purpose in many cities (Roseville, Rocklin, ad Folsom especially) where people can still get Conventional loans, instead of having to go the Jumbo/Non-Conforming route.
Please see: 2018 Loan Limit Look Up Table.
FHA, a government sponsored loan, tends to follow suit with similar increases, but has not made any announcement as to their 2018 loan limits yet.