The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price.
Effective immediately, PennyMac is aligning with the conforming loan limit increases for standard and high balance loans, as announced by Fannie Mae and Freddie Mac. In most areas, the 1-unit standard balance limit is increasing from $424,100 to $453,100, and the 1-unit high balance limit is increasing from $636,150 to $679,650. Loan amounts vary by area and unit, with complete details located at: http://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx
PennyMac will accept DU or LPA Approve/Ineligible decisions, when the “ineligible” result is solely due to the loan amount being in excess of the 2017 limits, but is within the 2018 limits.
LPA will be updated December 3rd, and DU will be updated the weekend of December 9 with the new loan limits.
In addition, the minimum loan amount for Jumbo Loans is being increased to $1 above the standard balance loan limit, or $453,101.
Please contact your Sales Representative with any questions.