Congress Extends Loan Limits
Posted by Benjamin Dona on Sunday, October 3rd, 2010 at 2:59pm.
Congress has voted to keep the maximum size of loans guaranteed by Fannie Mae, Freddie Mac and FHA at their current levels through the end of 2011. For buyers in high cost areas, the maximum mortgage amount will remain at $730,000 for Fannie/Freddie loans and at $625,000 for FHA mortgages.
Anything above these limits set by Congress falls into a category known as “Jumbo” loans. During the financial crisis, mortgage lenders became far less willing to make these types of loans and thus Congress had to act. A typical level for Jumbo loans used to be around 18% annually. This year, they've made up roughly 5% of the overall mortgage market. However, this is likely to change as the premium gap for borrowers who receive jumbo loans has fallen to about a 0.8 percentage points. Prior to the crisis, the premium level was 0.25 percentage points.
Examples of changes in our local counties here in Southwest Florida for 2010 include the following:
Collier County (including Naples) - FHA Loan Limit $531,250, New Fannie/Freddie Limit $531,250.
To find your individual county's 2010 loan limits, you can use HUD's county search feature at https://entp.hud.gov/idapp/html/hicostlook.cfm. Just choose your state, enter your county name and select the appropriate loan limit type and the limit year CY2010. HUD also has a comprehensive listing of the new loan limits in all counties throughout the country available for downloading. For more information, visit HUD's site at: http://www.hud.gov/pub/chums/file_layouts.html.
|Share Our Post:|
About the Author
Benjamin Dona is the Broker and Owner of Gulf Coast Associates, Realtors in Bonita Springs, Florida. He holds two advanced degrees, an MBA and an MA, and has an extensive background in both business and marketing. In 1998, he founded Gulf Coast Associates, and formed a group of like-minded Realtor® associates dedicated to offering professional Southwest Florida real estate services by concentrating on information, education and the use of leading edge technologies. He also is a recognized expert on the "Net," a much-quoted and read blog author, and a contributor to both national and international news outlets. Benjamin is a member of the National Association of Realtors, the Florida Association of Realtors, and numerous local real estate boards throughout Southwest Florida.
Contact Benjamin Dona at 239-948-3955
Southwest Florida Real Estate Blog