Fannie, Freddie Loan Limits to Rise in 39 High-Cost Counties

The Federal Housing Finance Agency said Wednesday that conforming loan limits for mortgages purchased by Fannie Mae and Freddie Mac will remain at existing levels except in 39 high-cost counties.

The current loan limits are $417,000 nationwide and $625,000 in high-cost areas. The limits will rise in 2016 in 11 counties in Colorado, five in Massachusetts, two in New Hampshire, four in California, 14 in Tennessee and three in Washington.

In California, Napa County's loan limits will be the highest in 2016 at $625,500, followed by San Diego County at $580,750 and Sonoma County at $554,300. Colorado will see the highest increases in 2016, up $34,500 to $458,850 in 11 counties including Denver and Boulder.

The FHFA, the regulator of Fannie, Freddie and 11 Federal Home Loan Banks, sets higher loan limits in high-cost counties as a function of area median home values. The FHFA kept loan limits unchanged in most of the country after determining that the average U.S. home value of $207,051 in the third quarter still remained below the $215,083 average in the third quarter of 2007.