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FHFA Announces Increase to Maximum Conventional Loan Limits 2018

John Thomas December 1, 2017 Tags: ,
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Official News From FHFA – Conventional Loan Limit Increasing in 2018

The Federal Housing Finance Agency (FHFA) announced that the current maximum loan limit for conventional loans with Fannie Mae and Freddie Mac is increasing with the release of Lender Letter LL-2017-10 for conventional loan limits 2018. That means Delaware homebuyers seeking larger Delaware conventional loans can now do so without having to apply for a Jumbo loan.

Currently, the maximum for conventional loans in the US is $424,100. Starting January 1st, 2018, conventional loan limits in counties across the U.S (including Delaware counties Kent, Sussex, and New Castle) will rise to $453,100  for one-unit properties.   This represents a 6.8% increase from the current 2017 maximum conventional loan limit. The John Thomas Team has all the information you’ll need to get started – call us at 302.703.0727 or Apply Online.

Conventional Loan Limits 2018

Delaware Conventional Loan Limits 2018

The Conventional Loan Limits for 2018 are outlined below by county:

New Castle County             $453,100

Kent County                         $453,100

Sussex County                     $453,100


High-cost Area Increases

The FHFA said that High-cost areas where 115 percent of the local median home value exceeds the baseline conforming loan limit will see the conventional loan limit increased to $679,650, or 150% of 453,100.  Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam and the U.S. Virgin Islands, with the baseline loan limit will be $679,650 for one-unit properties.

In these areas, the baseline loan limit will be $679,650 for one-unit properties, but loan limits may be higher in some specific locations.  Delaware does not currently have any host areas with the large conventional loan limits but Maryland, New Jersey, and Virginia have host cost areas.  Conventional loans in high cost areas are commonly called High Balance Conventional Loans.

Larger Delaware properties have their own increases as well. The new limits are $580,150 for two unit properties, $701,250 for three unit properties, and $871,450 for four unit properties.

Unofficial Possible Delaware Loan Increases

While this hasn’t been officially announced as December 1, 2017, some people are expecting VA Loans to match the increase. Currently, for VA loans in Delaware,the maximum VA Loan Limit for 100% Financing is $424,100 which matches the conventional loan limit.

A veteran can finance above the maximum of $424,100 but they would need to put down 25% of the amount above the maximum 100% loan limit. If the Department of Veteran Affairs increases the maximum loan limit for 100% financing on VA loans, the same principle will apply and Delaware veterans could see higher loan limits of $453,100 for 100% financing.

Some people are also expecting HUD to follow suit and raise their maximum loan limits on FHA Loans as well effective January 1, 2018.

The John Thomas Team Can Help

We can still get you into a home this year! We do fast pre-approvals and can close in less than 30 days. Call the John Thomas Team at 302.703.0727 or Apply Now for a Rate Quote.


About John Thomas

John Thomas and his team are long-time Delaware natives. They know the local real estate market as well as they know the loan products that help them serve it. Dedicated to helping first-time buyers; the John Thomas Team are experts on first-time buyer loan programs (FHA, VA, USDA) and conduct monthly first-time buyer seminars that have been attended by more than 3000 Delaware buyers.

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