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Market Trends


FHA Increases Loan Limits for 2018
As of January 1st, 2018, the Federal Housing Administration (FHA) will be increasing the FHA loan limit for new cases from its current level of $287,500 to $294,515. This increase means that an FHA buyer, putting the minimum 3.5% down, can now purchase a house for $305,000.

Additionally, the FHA-insured Home Equity Conversion Mortgages will also rise from $636,150 to $679,650.

Why The Increase?

Piggy Bank
  The FHA is required to base its floor and ceiling limits on the loan limit set by the Federal Housing Finance Agency (FHFA) under the National Housing Act, per the 2008 amendment by the Housing and Economic Recovery Act. Due to the FHFA’s increase in loan limits, courtesy of rapid growth in median housing prices, from $424,100 to $453,100 in 2018, the FHA may also increase their loan amounts for 2018.

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2nd Year in a Row FHFA Has Increased Limits       

For the second straight year, the FHFA is moving forward with approval to increase Fannie and Freddie’s conforming loan limits in 2018. House prices have increased 6.8%, on  average, between the third quarter year-over-year from 2016 to 2017. This improvement means that the FHFA can approve an increase on the conforming loan limits from $424,100 to $453,100 in 2018.

As a result of this increase, the FHA can increase their lending capabilities moving into 2018.

House of Money

If you are thinking of buying a new home, now is the time to take advantage of the market. Inventory is still low, but housing prices have remained affordable here in NE Louisiana. If you have any questions about how to buy a home, how the home process works or if you have general real estate questions or questions about FHA  increases loan limits for 2018, please feel free to contact me anytime.

My website has a wealth of knowledge that is designed to help you out with ideas about anything related to the NE Louisiana real estate market.

You can also call me direct at: 318-488-1760 or email me: