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    Over the past five years, housing prices in the U.S. have been rising about twice as fast as the historical average—mostly due to low inventory. So, it’s only natural that many (but not all) of the 2018 VA home loan limits and FHA loan limits are also higher than last year. The new rates—effective January 1, 2018 to December 31, 2018—reflect the low and high ends of how much buyers can borrow, depending on where they live.

    News about VA and FHA loan limits follows a recent announcement from the Federal Housing Finance Agency (FHFA) that it will increase the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018.

    The Veteran’s Administration doesn’t set a cap on how much a qualified veteran can borrow to finance a home, but there are limits on the amount of liability it is willing to assume. The loan limits below, which vary by county, are how much a qualified veteran with full entitlement may be able to borrow without making a down payment.

    For VA loans, if your county is one that had a loan limit increase, the higher limits are available with loans that close on or after January 1, 2018. If your county is one that had a decrease in the loan limit, you are not eligible for a higher loan limit. Your new loan, if a refinance, must close by December 31, 2017 if it needs the higher loan limit currently available for the respective county.

    FHA case numbers assigned on or after January 1, 2018 will be eligible for the 2018 loan limits. In 2016, only 188 counties in the U.S. saw FHA loan limits increase—that number jumped to 2,948 counties in 2017 and 3,011 counties in 2018.

    Not sure which type of mortgage is right for you? Find an Embrace Home Loans Mortgage Specialist in your area to learn more about your options in 2018.

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