WASHINGTON, D.C. – The Federal Housing Finance Agency (FHFA) says maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2016 will remain at existing levels except in 39 high-cost counties (none in Texas), where they will increase.
In most of the country, the loan limit will remain at $417,000 for one-unit properties.
The Housing and Economic Recovery Act of 2008 established the baseline loan limit at $417,000 and mandated that after a period of price declines, the baseline loan limit cannot rise again until home prices return to pre-decline levels.
The $417,000 loan limit will stay the same for 2016 because FHFA determined that the average U.S. home value in the third quarter of this year remained below its level from third quarter 2007.
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