The Federal Housing Finance Agency (FHFA) has just announced the 2017 county conforming loan limits will be raised from $417,000 to $424,100.
This is the first time the conforming loan limit has been raised since 2006 – an increase of $7,100. The reason for the increase is based on the FHFA’s analysis that the Home Price Index (HPI) value for the third quarter of 2016 was approximately 1.7% above average home values in 2007. Effectively, the conforming loan limit has increased by the same percentage.
2017 Conforming Loan Limit $424,100
3% Down-Payment: First-time home buyers looking to put down the minimum of 3% will now be able to purchase a home priced at $437,216 ($7,320 increase)
10% Down-Payment: First-time home buyers looking to put down 10% will now be able to purchase a home priced at $471,222 ($7,889 increase)
20% Down-Payment: First-time home buyers looking to put down 20% will now be able to purchase a home priced at $530,125 ($8,875 increase)
2017 Conventional High Balance Loan Limit $612,950
The San Diego County High Balance loan limit is also set to increase in 2017 from $580,750 to $612,950.
5% Down-Payment: Home buyers looking to put down the minimum of 5% will now be able to purchase a home priced at $645,210 ($33,895 increase)
10% Down-Payment: Home buyers looking to put down 10% will now be able to purchase a home priced at $681,055 ($35,778 increase)
20% Down-Payment: Home buyers looking to put down 20% will now be able to purchase a home priced at $766,187 ($40,250 increase)
What about 2017 FHA and VA Loan Limits?
The FHA and VA have not yet confirmed that they will adopt these new limits, but it’s very likely.
By the way, if you live in San Francisco, you’re probably saying to yourself “Home prices in MY neighborhood have gone up a lot more than 1.7% since 2007…”
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