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    Why do conforming loan limits adjust?

    Q. Why do conforming loan limits adjust?

    A. Fannie Mae  & Freddie Mac adjust their loan limits to stay in line with the adjusting value of home prices. They recently increased the conforming (non-jumbo) to $510,400.00.  FHA typically follows Fannie with the increases.

    Q. What does this mean for the buyer?

    A. If the buyer is doing a 97% loan it means that they can be looking at a house with a purchase price of $526,185.00, with a 95% loan they can look at homes prices at $537,263.00. The new FHA loan limit for the Atlanta MSA has increased to $401,350.00 which means that a borrower can now go up to a $415,906.00 purchase price.

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