Freddie, Fannie conforming loan limits unchanged in 2016

November 30, 2015

WASHINGTON (11/30/15)--The Federal Housing Finance Agency (FHFA) announced last week that the maximum conforming loan limits for Fannie Mae and Freddie Mac-acquired mortgages will remain unchanged next year.

Except for 39 high-cost counties--where conforming loan limit will, in fact, increase--the loan limit again will stand at $417,000 for single-unit properties.

The FHFA held off on raising the limit because it determined that the average U.S. home value in the third quarter came in lower than home values in the third quarter of 2007.

The Housing and Economic Recovery Act (HERA) of 2008 mandated that the FHFA can’t raise the baseline loan limit, established at $417,000, until prices have surpassed their pre-recession levels.

In aberrational counties with higher-cost home values, HERA provides for higher limits, which it bases on area median home values. While other counties aside from the 39 that will have their loan limits raised next year have seen home values climb, other elements of the formula HERA uses to determine limits stayed the agency’s hand.

A list of the 2016 maximum conforming loan limits for all counties can be found on the FHFA’s website.