Quick Search
Welcome, Log In or Sign Up to save your searches and bookmark your favorite listings.

Congress Extends Loan Limits

Posted by Benjamin Dona on Sunday, October 3rd, 2010 at 2:59pm.

Congress Extends High End Loan LimitsCongress 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:

Lee County (including Bonita Springs, Cape Coral and Ft. Myers) - FHA Loan Limit $356,250, Fannie/Freddie Limit $417,000.

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.

Related Links:

Share Our Post:     Facebook    Twitter    


3 Responses to "Congress Extends Loan Limits"

Steve in Mesa wrote:
Great information. Thanks for posting the website, it was really interesting to look at!

Posted on Monday, October 4th, 2010 at 2:10pm.

Benjamin wrote:
Your welcome!

Posted on Monday, October 4th, 2010 at 2:24pm.

Charlie in Idaho wrote:
This probably won't affect the sale of Fruiltand homes very much. Prices have gone down and most sales are happening at the bottom end of the price spectrum.

Posted on Monday, October 4th, 2010 at 8:49pm.



Leave a Comment