2018 Conforming Loan Limits
- Conforming Loan Amounts
- Conforming mortgage: In the 48 contiguous states, Washington D.C. and Puerto Rico, the general conforming loan limit is $453,100 for single unit property and $871,450 for a four unit property. In Alaska, Guam, Hawaii and the U.S. Virgin Islands the general conforming loan limit is $679,650 for a single unit property and $1,307,175 for a four unit property.
- Use our CONFORMING Loan LIMIT CALCULATOR to determine the conforming loan limit in your county
- Conforming Jumbo or Super Conforming Loan Amounts
- Conforming jumbo mortgage: Also known as a super conforming mortgage, this is a mortgage with a loan amount greater than the general conforming loan limit but less than the high cost conforming loan limit that applies to more expensive counties. In the 48 contiguous states, Washington D.C. and Puerto Rico, the maximum high cost conforming loan limit is $679,650 for single unit property and $1,307,175 for a four unit property. In Alaska, Guam, Hawaii and the U.S. Virgin Islands the maximum high cost conforming loan limit is $1,019,475 for a single unit property and $1,960,750 for a four unit property. Please note that the high cost conforming loan limits range between the general loan limit to the maximum high cost conforming limit, depending on the cost of housing for the specific county.
- Jumbo Loan Amounts
- Jumbo mortgage: Also known as a non-conforming jumbo loan, the loan amount for a jumbo mortgage exceeds the high cost conforming loan limit in a county.
Conforming Loan Limits – Maximum Original Principal Balance Number of Units Contiguous United States, District of Columbia,
and Puerto Rico
Alaska, Guam, Hawaii, and the U.S. Virgin Islands General High Cost General High Cost 1 $453,100 $679,650 $679,650 $1,019,475 2 $580,150 $870,225 $870,225 $1,305,325 3 $701,250 $1,051,875 $1,051,875 $1,577,800 4 $871,450 $1,307,175 $1,307,175 $1,960,750
Mortgage amounts fall into three categories: conforming, super conforming and jumbo loans. We outline the three loan amount categories below and explain how your loan size impacts your mortgage rate, program eligibility and other borrower qualification requirements.
You will likely receive the lowest mortgage rate if your loan amount is below the conforming loan limit. The conforming loan limits are set by government (Federal Housing Finance Agency) and government-sponsored enterprises (Fannie Mae and Freddie Mac) and apply to all lenders. Lenders are able to sell mortgages with conforming loan amounts to these government-sponsored enterprises which allows lenders to offer borrowers their best mortgage rate possible. As outlined in the table below, the loan limits vary by number of units in the property with a single-unit property having the lowest limit.
For conforming loans, lenders will typically offer you their lowest mortgage rate if the loan-to-value (LTV) ratio (the ratio of the mortgage amount to the property value) is 80% or lower but borrowers are able to use conventional and government-backed no or low down payment programs to obtain mortgages with an LTV ratio of 97% or even 100% in the case of the VA and USDA mortgage programs. This reduces the down payment or property equity required to qualify for a mortgage.
Loans with conforming loan amounts are typically eligible for all conventional and government-backed mortgage programs. Some no or low down payment mortgage programs allow conforming jumbo or super conforming loan amounts in higher cost counties while other programs set the maximum loan amount at the general conforming loan limit. You should check with your lender to determine if your mortgage program applies loan limits.
The borrower credit score requirement of ~640 for standard conforming mortgages is typically lower than the requirement for non-conforming mortgages, and even lower for certain low / no down payment mortgage programs. For example, the Fannie Mae HomeReady mortgage program is available to qualified borrowers with a minimum credit score of 620 and the FHA home loan program is available to borrowers with a score of 580 or possibly lower.
Additionally, for conforming mortgages, lenders typically require the borrower to demonstrate the ability to repay the mortgage according to Qualified Mortgage guidelines.
As outlined in the table below, there are two sets of loan limits within each geographical category – general conforming loan limits and high cost area conforming loan limits. If you live in a county with higher average home prices, also known as a high cost area, then the conforming loan limit may be higher than $453,100. If your loan amount is greater than the general conforming loan limit but less than the limit for your county then this is a conforming jumbo mortgage or super conforming mortgage. The mortgage rates for conforming jumbo loans may be slightly higher than the interest rates for conforming mortgages, although sometimes they are the same, depending on market conditions.
You usually see more variation in interest rates and loan terms for jumbo mortgages as lenders have greater flexibility in setting pricing and borrower qualification guidelines as compared to conforming mortgages. This dynamic creates competition between jumbo mortgage lenders and borrowers can benefit from this competition by comparing multiple proposals and negotiating the best terms for their loan.
The maximum LTV ratio for jumbo mortgages usually 80% - 90%, although borrowers may pay a higher mortgage rate or private mortgage insurance (PMI) if your LTV ratio is more than 80%. Additionally, the LTV ratio limit may be lower for larger loan amounts. Borrower credit score requirements for jumbo mortgages are usually higher than for conforming loans. Lenders typically require that jumbo borrowers have a minimum credit score of 680 - 720. Lenders may also apply a lower maximum LTV ratio for borrowers with lower credit scores. Most jumbo mortgages are not eligible for conventional and government-backed low down payment programs.
The table below outlines the general and high cost area 2018 conforming loan limits by the number of units in the property. Properties with more than one unit have higher loan limits.
The table below shows interest rates and fees for conforming mortgages. We recommend that you contact multiple lenders in the table below to compare mortgage proposals. Comparing loan terms is the best way to save money on your mortgage.
Conforming loan limits: https://www.fanniemae.com/singlefamily/loan-limits