Selling Guide

Published June 3, 2020

The Selling Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Selling Guide in PDF format.

View All Selling Policy Updates

Download PDF

Hint: Ask in a form of a question.

For best results, pose your search like a question.

B2-1.5-01, Loan Limits (02/06/2019)

Introduction

This topic contains information on loan limits, including:

 

Overview

Fannie Mae can only purchase loans up to a certain dollar amount. This dollar amount is known as the loan limit. Fannie Mae’s loan limits are imposed under its federal charter as amended by law.

The loan limits apply to all conventional loans delivered to Fannie Mae for whole loan purchase or MBS pool issuance and are based on the original loan amount of the loan (irrespective of the origination date). The limits are subject to change annually and vary, depending upon the number of units in the property and the property’s location. The Loan Limits for Conventional Mortgages are posted on Fannie Mae's website.

Lenders are responsible for ensuring that the original loan amount of each loan does not exceed the applicable maximum loan limit for the specific area in which the property is located at the time the loan is delivered to Fannie Mae.

 

Loan Limits Defined

Fannie Mae’s first mortgage loan limits are defined in terms of general loan limits and high-cost area loan limits:

  • The general limits apply to the majority of the loans that Fannie Mae purchases.

  • The high-cost area loan limits apply to loans secured by properties in designated high-cost areas, as determined by Fannie Mae’s regulator. The high-cost area loan limits vary across the country.

High balance loans are subject to the high-cost area loan limits. Fannie Mae’s eligibility and delivery requirements may vary for high-balance loans. See Chapter B5-1, High-Balance Mortgage Loans for additional information.

If the loan is a first lien securing an ownership interest in a co-op corporation, the amount of the first lien and prorated share of the co-op corporation blanket mortgage cannot exceed Fannie Mae’s loan limits.

Fannie Mae has no minimum original loan amount requirement for either whole loans or MBS loans.

 

Loan Limits and Modified Loans

Loan limits for modified loans are based on the original loan amount of the loan and not on the unpaid principal balance of the loan at the time of modification or acquisition by Fannie Mae. A modified loan with an original loan amount exceeding the current loan limit is not eligible for purchase by Fannie Mae, even though the balance at the time of the modification may be at or below the current applicable loan limit.

Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing
Guide
content.

Try Ask Poli

Related Articles

B2-1.5-02, Loan Eligibility (08/07/2019)

IntroductionThis topic contains information on mortgage loan eligibility requirements, including: Ability to Repay Loan Eligibility Requirements ...

Read more

B2-1.5-03, Legal Requirements (06/03/2020)

IntroductionThis topic contains information on legal requirements, including: First Mortgage Lien Position  Personal Property  Rental Property...

Read more

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.