What was the 2017 standard conforming loan limit for a single-family property?

What was the 2017 standard conforming loan limit for a single-family property?

• A. $350,000
• B. $424,100
• C. $500,000
• D. $300,000

Answer: (B)

The 2017 standard conforming loan limit for a single-family property was set at $424,100. This limit is established annually by the Federal Housing Finance Agency (FHFA) and is important for determining the maximum amount that Fannie Mae and Freddie Mac can purchase. This threshold is crucial for borrowers seeking conventional financing, as loans that exceed this limit are considered 'jumbo loans,' which typically have stricter credit qualifications and potentially higher interest rates. The limit of $424,100 reflects the adjustments made to property values in various regions, as the FHFA reviews housing price trends each year to ensure that the conforming loan limits remain aligned with current market conditions. Understanding this limit helps mortgage loan officers guide their clients in selecting appropriate loan products that meet their needs while remaining within the conforming loan guidelines.

The 2017 standard conforming loan limit for a single-family property was set at $424,100. This limit is established annually by the Federal Housing Finance Agency (FHFA) and is important for determining the maximum amount that Fannie Mae and Freddie Mac can purchase. This threshold is crucial for borrowers seeking conventional financing, as loans that exceed this limit are considered 'jumbo loans,' which typically have stricter credit qualifications and potentially higher interest rates.

The limit of $424,100 reflects the adjustments made to property values in various regions, as the FHFA reviews housing price trends each year to ensure that the conforming loan limits remain aligned with current market conditions. Understanding this limit helps mortgage loan officers guide their clients in selecting appropriate loan products that meet their needs while remaining within the conforming loan guidelines.