As 2017 is around the bend we have increased our loan limits on conforming and FHA loans! This is great news because you can buy more with less down. Could be a sign to come in the mortgage world. Conforming loan limits will increase from $417,000 to $424,000. Not a ton but everything helps. All of these loans that are $424,000 and below are sold on secondary market and the underlying guidelines are followed by Fannie Mae or Freddie Mac. If you go above $424,001 - the loans are sold to investors directly and they make their own guidelines which are usually more difficult - meaning - lesser debt ratios, more reserve requirements and higher FICO requirements. The big surprise was FHA increased to $421,100! This means you can buy a home for $439,400 and put 3.5% down and have all the flexibility of the FHA guidelines which are usually the most relaxed comparing to jumbo or conventional financing. If you are buying a duplex and going to owner occupy the property and rent out the other side - you can have a loan amount of 543,000 and buy a property of $562,000 and only put 3.5% down. That is pretty amazing. Regardless of your political beliefs... the new administration looks to be making lending open up a little. We will see but if more p[people can qualify for homes and the process is not so stringent the rates increasing may not put a damper on any home sales in 2017!