Conventional Loan Programs

Conventional loans are secured by government sponsored entities or GSEs such as Fannie Mae and Freddie Mac. Conventional loans can be made to purchase or refinance homes with first and second mortgages on single family to four family homes.

2017 Conventional Fannie Mae and Freddie Mac Loan Limits

UnitsContiguous States, District of Columbia, and Puerto RicoAlaska, Guam, Hawaii, and the U.S. Virgin Islands
1$424,100$636,150
2$543,000$814,500
3$656,350$984,525
4$815,650$1,223,475

2017 Conventional Fannie Mae and Freddie Mac Loan Limits – All but 87 counties (or county equivalents) will see a loan limit increase.

UnitsContiguous States, District of Columbia+Alaska, Guam, Hawaii, and the U.S. Virgin Islands
1$636,150$954,225
2$814,500$1,221,750
3$984,525$1,476,775
4$1,223,475$1,835,200

Second Mortgages

  • $208,500 (in Alaska, Hawaii, and the US Virgin Islands: $312,750)

Loans which are larger than the limits set by Fannie Mae and Freddie Mac are called jumbo loans. Because jumbo loans are not funded by these government sponsored entities, they usually carry a higher interest rate and some additional underwriting requirements. A strategy to lower your overall interest payments if your purchase or refinance balance is above $417,000 is to use a combination of both first and second trust money, referred to as an 80/10/10, 80/15/5 or 80/20. Every situation is different, but it is one more option to consider.

In addition to common loan structures such as fixed rate, adjustable rate and balloon loans, Fannie Mae and Freddie Mac also have loan programs for low to no down payments, community lending and affordable housing initiatives, construction to permanent, home improvement and reverse mortgages.

Data Source: https://www.fanniemae.com/singlefamily/loan-limits

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