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New Fannie Loan Limits - Act Now - End of Year Decrease!
Notify Your Clients & Realtors® of New Loan Limits Before It's Too Late!
Written By: Leslie Petersen, President, MortgageCurrentcy.com, the online newsletter that interprets the rules and regulations 4 different ways - how it affects loan officers, managers, processors and underwriters!
Effective with loans that are closed (note date) after 12-31-08, new conforming maximum loan limits are:
- General Limits - "shall not exceed"
- $417,000: 1-unit
- $533,850: 2-units
- $645,300: 3-units
- $801,950: 4-units
- Maximum Loan - 150% of General Limit
- $625,500: 1-unit
- $800,775: 2-units
- $967,950: 3-units
- $1,202,925: 4-units
- High Cost Area - Calculated at the greater of 115% of median home price in the area; no lower than the General Limit, and no greater than the Maximum Loan.
- Beyond 2009 - Increases will follow the housing price index as maintained by the Federal Housing Finance Agency
- Increase will be equal to percentage increase in housing index
- Limits will never go down
- If limits remain the same due to a decrease, the next year will take the cumulative amount to calculate the new loan limits
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Leslie's Comments
I think this is excellent news! Yeah, I know that we lost the $729,750 maximum, and that it will hurt, but remember that it was temporary? And we’ve ended up at $625,500 in high cost areas! It’s a heck of a lot better than $417,000 – which is where we were headed!
The new maximum loan amounts may not take effect until 1-1-2009, but you can still use this information now. Let’s review how: (Realtor® Flyer/Email for subscribers)
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