Conforming and FHA Loan Limits Increased
The Office of Federal Housing Enterprise Oversight (OFHEO) on March 6 released the Fannie Mae-Freddie Mac maximum conforming loan limits that will be in effect through year-end as a result of the economic stimulus legislation signed into law last month by President Bush.
Seventy-one Metropolitan and Micropolitan Statistical Areas are affected, including 224 counties and cities not in counties. In addition, there are 21 counties outside of those areas where the limits have been increased, plus Guam and four municipalities in the Marianas Islands.
The newly increased limits range from $417,500 in Greeley, Colo. to the highest of $793,750 in Honolulu.
In the continental U.S., $729,750 is the maximum limit for a single-family home. The conforming loan limit has been set that high in eight markets in California, including Los Angeles and San Francisco. Three smaller markets in Colorado; two in Massachusetts; Key West, Fla.; Washington, D.C.; New York City and Salt Lake City also saw their limits raised to the maximum.
Fannie Mae subsequently announced that it will begin purchasing fixed-rate mortgages at the higher limits effective April 1, and do the same for ARMs starting on May 1. Freddie Mac has not yet announced its effective dates.
In a related development, the Department of Housing and Urban Development on March 5 raised the loan limits for homes insured by the Federal Housing Administration in 14 counties in California. The action was taken after Congress passed its economic stimulus package last month, which includes a temporary increase through year-end on FHA-backed loans, from $362,790 to as high as $729,750. In prepared remarks, HUD Secretary Alphonso Jackson said the new limits will make FHA-backed loans available to as many as 30,000 Californians and 250,000 home owners nationwide.
The following day, HUD announced that it raised the limits in other counties across the nation as well. Overall, the change in loan limits will help provide economic stability to America's communities and give nearly 240,000 additional home owners and home buyers a safer, more affordable mortgage alternative, HUD said in announcing the new loan limits.
For more on FHA loan limits in your home area, click here. For additional information, e-mail Bill Renner at NAHB, or call him at 800-368-5242 x8597.
Want to Know the Housing Forecast for the Top 100 Metros?
Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview).
Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables.
To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown
What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.
To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.
To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.
For assistance, call the NAHB Member Service Center at 800-368-5242.