Some Conforming Loan Limits for Mortgages Return to $729,750
By: Diane Tuman, Zillow Content Manager | February 23, 2009
Just announced: As part of the President Obama’s housing plan (the American Recovery and Reinvestment Act), the maximum amount for conforming loan limits for mortgages originated in 2009 have been returned to their late-2008 levels. This means Fannie Mae and Freddie Mac conforming loan limits will be $729,750 for one-unit properties in certain high-cost areas of the continental U.S. The previous limit for high-cost areas was $625,500. See local area loan limits.
This announcement comes from the Federal Housing Finance Agency, which regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.3 trillion in funding for the U.S. mortgage markets and financial institutions.
- See Zillow Advice for discussions on conforming loan limits
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- Categories: Mortgages
Comments
13 Comments so far
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Janet Giacoma on February 23, 2009 3:52 pm
That is a big help for the west coast folks.
Jennifer on February 24, 2009 1:33 am
Great news, what the economy needs now are lending guidelines that allow people to take on more debt.
Terrence Askew on February 28, 2009 5:01 pm
I think that it is great news as well. I have a lot of customers who couldn’t refinance until this increase. I just hope that it stays this way.
Prince William Homes on March 1, 2009 6:52 pm
I really wonder if it will really help the eonomy, or is it just too late. When they started talking about this it was back in 2007. Now that Alt-A foreclosures are supposed to hit like a tsunami…why buy or take on a high priced mortgage? They should have done this a while ago before unemployment went off the charts. Too little, too late… Just my thoughts!
Robert on March 15, 2009 8:51 pm
I’d like to think Janet and Jennifer are being sarcastic, Terrence.
I’ll never understand why San Diego County was NOT considered a high-cost area in 2007 when I needed to refinance my $500,000+ loan…on a house you could probably buy for $150,000 or less in some parts of the U.S.
San Diego County IS considered a high-cost area for loan originations in 2009 but that does not help me and countless others in a similar situation.
margie on April 9, 2009 10:47 pm
what happen if the loan is not back up by freddie
or fannie…It is nothing we can do?
Obama has a refinance plan... | on April 12, 2009 8:03 pm
[...] Have a conforming loan. That means a loan under $417,000 in many areas or up to $625,500 in high-cost areas like San Francisco, Boston or Washington, DC. Even still, the Zillow Home Value Index (median home value) for the city of San Francisco is $724,244, which says that lots of people have loans higher than the conforming limit. (Note: the conforming loan limit for certain high-cost areas of the U.S. for 2009 mortgage originations is now …) [...]
Mike on April 13, 2009 5:10 am
One major problem not addressed by this is all the folks who already have first mortgage balances significantly below the value of their home, but have home equity loans bringing their total balance into the 80% range or higher. This is a very common strategy to avoid mortgage insurance when there is not a large enough down payment, so MANY people are in this situation.
The problem here is that many lenders are refusing to resubordinate home equity loans when the total loan balance is over 80%. This means that people under these conditions are unable to refinance their primary mortgage at all because their current home equity lender is unwilling to resubordinate under the refinanced loan (even though it lowers their risk), and they cannot find another institution to give them a new equity loan.
Vinnys House of Real Estate » Blog Archive » Refinance, Home Loan Refinance on April 16, 2009 1:31 pm
[...] Have a conforming loan. That means a loan under $417,000 in many areas or up to $625,500 in high-cost areas like San Francisco, Boston or Washington, DC. Even still, the Zillow Home Value Index (median home value) for the city of San Francisco is $724,244, which says that lots of people have loans higher than the conforming limit. (Note: the conforming loan limit for certain high-cost areas of the U.S. for 2009 mortgage originations is now …) [...]
mary on April 17, 2009 6:18 am
If 2 combined loans are with in 105 % of the resale value of the property, Why would the lenders NOT allow folks to refinance and combine a first and 2nd mortgage into 1 loan with a lower interest rate? That does not seem helpful or make any sense.
Propertymortgage on October 23, 2009 4:51 am
It seems to be moving the economy slightly but still far to go.
Sarah Fordham on October 26, 2009 8:33 am
Am I taking crazy pills? Are there really that many homes out there in need of financing that cost more than $600,000.00? Are they made of titanium, and built underground bowling alleys? Certainly I am being slightly facetious here but, are these the folks who the government really needs to be concerned about in the current downturn?
Maybe I’m being slightly arrogant here, but if you could afford a 600 - 700 thousand dollar house (or convinced yourself you could) can’t you convince yourself some way to save your own butt without a federal low interest loan?
Mike on November 12, 2009 5:35 pm
I live in a high cost area (Marin, north of San Francisco) and no such lenders in this area are honoring the new conforming cap of 625,000. I owe 507,000, have good credit, income, and own over 23% of the home, but no one will give me any type of re-finance!