The conforming loan limit explained: where the line is and what crossing it means
The yearly reset
The line, briefly
Under the Housing and Economic Recovery Act, FHFA adjusts the baseline limit each year to reflect the change in average home prices, usually announcing the new limits late in the year for loans delivered from January. If prices fall, the law keeps the limit from dropping until prices recover.
Last reviewed against the primary sources listed below.
What to watch
- FHFA's announcement of next year's limits.
- Whether your county's limit changed.
- Whether your lender applies the new limit before January.
Questions about the line
When do new conforming limits take effect?
Generally for loans acquired starting in January. Ask lenders how they handle loans that close near year end.