Conforming Loan Limit Increase Coming in 2018
The conforming loan limit is increasing to $453,100 in 2018, up from $424,100. This applies to all “Conventional” mortgages – loans that conform to Fannie Mae or Freddie Mac guidelines. Any loan amount over this mark is considered a Jumbo loan and is subject to a different set of underwriting and qualification guidelines.
The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price. The Federal Housing Finance Agency (FHFA) is responsible for setting this limit.
According to the National Association of Realtors, the median home price in Portland for Q3 2017 is $389,400, a 8.6% increase from their last report.