Fannie Mae and Freddie Mac have both announced that the maximum mortgage loan limits for conforming and high-balance Massachusetts mortgages are increasing effective for loans closed on or after 1/1/18.
In 2017 the Massachusetts conforming loan limit was $424,100. In 2018 it will raise to $453,100.
Some Massachusetts counties are also considered “High Cost Areas” by Fannie Mae and Freddie Mac due to the cost of living being higher than in most areas of the country.
Here are the Massachusetts mortgage loan limits for 2018 (1-unit properties):
The Massachusetts mortgage loan limits for 2018 have also increased on 2–4 Unit properties.
You can look up any county mortgage loan limits here: https://entp.hud.gov/idapp/html/hicostlook.cfm
This change will help Massachusetts home buyers in a few ways:
1. The higher conforming loan limits mean Massachusetts home buyers can now do 3% down up to a $453,100 loan amount.
2. The increased high-cost loan limits mean Massachusetts home buyers can now do 5% down up to a $603,750 loan amount in Essex, Middlesex, Norfolk, Plymouth, and Suffolk counties.
3. “Jumbo loans” are now considered any mortgage above $453,100. Jumbo loans are more complicated and have stricter underwriting requirements. Massachusetts home buyers with mortgage loan amounts up to $453,100 will now have an easier time getting approved for a mortgage.
Massachusetts home buyers should be thrilled the mortgage loan Limits increased for 2018!
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Originally published at info.oathrealestate.com.