Fannie Mae releases notice on loan limit changes

Federal Issues FHA Department of Veterans Affairs Loans

On January 3, Fannie Mae updated its mortgage loan underwriting system, Desktop Underwriter (DU), to support changes made to FHA and VA loan limits. The update will take place during the weekend of January 20. For FHA loan casefiles submitted before the weekend of January 20, the FHA National Low Cost Area Limit amounts will be updated in DU to reflect the new values. For FHA loan casefiles submitted on or after the weekend of January 20, DU will display the 2024 FHA National Low Cost Area Limit. Fannie Mae notes that lenders are responsible for verifying the correct information when determining eligibility. For VA 2024 county loan limits, cases submitted before the weekend of January 20 will be underwritten using the 2023 VA county loan limits. All case files submitted on or after the weekend of January 20 will be underwritten using the 2024 VA county loan limits. Fannie Mae notes since the “2024 VA county loan limits will not be implemented on the date they are in effect[;] lenders are responsible for ensuring that the correct VA county loan limit is applied to all VA loans underwritten through DU from Jan. 1 to Jan. 20.”