The Federal Housing Finance Agency (FHFA) has announced an increase in the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018.
According to FHFA's Home Price Index, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017. As a result, the baseline maximum conforming loan limit for 2018 was adjusted to increase by the same percentage.
Starting in 2018, the loan limits in DC and Montgomery County will increase from $424,100 to $453,100 and $636,150 to $679,650. This means buyers can now purchase larger homes with less money down! With the increase, a homebuyer in the DC area could now buy a $467,000 with just 3% down and a $715,000 home with just 5% down!