Conventional Loan Limits Have Increased for 2018

On November 29, 2017, Fannie Mae and Freddie Mac officially announced they would be increasing the conventional loan limits for 2018. We turned to mortgage broker Ben Deboer from Molitor Financial Group to find out a little more: LRR: Can you tell us a little more about the specifics of this change?

Ben: The loan limit for conventional loans has been increased from $424,100 to $453,100 for single family home and condo purchases. This means that if you were on the cusp of needing a JUMBO loan that required a higher down payment, you now may be able to use a regular conventional loan allowing for a smaller down payment. Also, if you are thinking about purchasing a multi-unit building, the loan limits on those have also increased. The loan limit for two unit buildings are now $580,150, three unit buildings are $701,250, and four unit buildings are $871,450.

LRR: How does this benefit buyers?

Ben: Before this change, if you needed to take a home loan out that was above $424,100, you would be forced to do so with a JUMBO loan. JUMBO loans characteristically have higher interest rates, higher down payment requirements, and more stringent underwriting guidelines. The minimum down payment for most JUMBO loans is 10%. With this increase in the conventional loan limit to $453,100, buyers will now have more flexibility to take advantage of the benefits of a conventional loan. With a conventional loan, buyers can put down as little as 3% and take advantage of conventional loans lower interest rates.

If you have further questions you can contact Ben at or (219) 308-5687.