Maximum loan limits have been increased for 2018!
I wanted to dedicate this week’s blog to keeping everyone current and highlight the maximum loan amounts that have been set for VA, USDA, FHA, and Conventional loan limits for 2018!
And remember, if you ever need assistance or have any financing questions please use my team as a resource – that is what we are here for!
Whether it is for a new pre-qualification or to help with an existing transaction that may be experiencing financing difficulties, just call or email to discuss your scenario so we can go to work for you!
Do USDA Loans have a maximum loan size?
Wait a second, is this a trick question? Well in case you did not know, it is true that USDA loans actually have no loan limits! Since there is not a maximum set sales price for a USDA loan, this can be a powerful option that sometimes gets overlooked
Because USDA loans do not have set loan limits, they can be a great option when compared to either conventional or FHA loans, which both require a minimum required down payment.
While there is no maximum USDA loan size, the USDA maximum loan is amount is calculated on the applicant’s ability to qualify.
Thankfully, USDA income limits were also increased in 2017 which definitely helps when trying to qualify for those higher priced homes.
Department of Veterans Affairs
What is the VA maximum loan amount?
With VA's recent announcement of their updated maximum guarantee limits which are effective January 1, 2018, they mirror the laon limits of the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac’s maximum conforming loan limits which is now $453,100 for a single family residence (see below under the 2018 conventional loan limits).
Per VA: “VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. These loan limits vary by county, since the value of a house depends in part on its location.”
Remember, the basic entitlement for each eligible Veteran is $36,000 and VA approved lenders such as Metroplex Mortgage Services will generally lend up to 4 times a Veteran’s entitlement without requiring a down payment.
Moreover, if a Veteran has previously lost a VA loan through bankruptcy, foreclosure, or a short sale they may still be eligible for another VA loan by determining any remaining “bonus entitlement“. While this can be complicated, please call my team to discuss your scenario so we can try to help.
Remember, minimum income and credit conditions will apply along with meeting sufficient equity requirements in some situations.
Conventional Loans (Fannie Mae and Freddie Mac Conforming)
What are the 2018 Fannie Mae and Freddie Mac conforming loan limits?
The 2018 Fannie Mae and Freddie Mac loan limits have been increased as recently announced by the FHFA (Federal Housing Finance Agency) for both general and high cost county loan limits for Fannie Mae (FNMA) and Freddie Mac (FHLMC).
The previous 2017 general loan limit was $424,100 and that has seen a healthy increase up to $453,100 for a one unit property.
While most of our clients and Realtors work in general loan limit counties, here is an overall chart which compares the loan limits for one, two, three, and four unit properties when financing a conventional mortgage in both types of counties
Also, you can click on the links for the related Fannie Mae conforming loan limit and Freddie Mac conforming loan limit announcements for more details which include the increased loan limits that are found in the higher cost areas.
FHA Loans (Federal Housing Administration)
What are FHA 2018 maximum mortgage amounts?
The FHA has published their 2018 maximum mortgage amounts with Mortgage Letter 2017-16 (remember this is the loan amount financed, not the sales price) for both low and high cost areas which become effective for case numbers assigned on or after January 1, 2018.
The maximum FHA loan amount for a one unit property located in a low cost county area has increased from $275,665 in 2017 to $294,515 in 2018!
Additionally, the respective loan amounts have also increased for 2,3, and 4 unit properties that are eligible for FHA financing.
2018 county limits have been updated on FHA's Mortgage Limits Search Engine. To determine the 2018 limit, select “CY2018” from the Limit Year drop down menu.
What are the maximum loan amounts for 2018? is available in the following areas/cities
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