Congress Raising Conforming Loan Limits

Real Estate Agent with Chris Balmes Properties

Congressional leaders and the White House reached agreement late last week on a proposal to increase conforming loan limits as part of a larger economic stimulus package. Part of the package will include having the FHA loan limits increased from $362,000 to a high of $729,750 and the GSE (Government-Sponsored Enterprises - i.e. Fannie Mae and Freddie Mac) conforming loan limit would increase from $417,000 to a maximum of $729,750. Also, in order to provide an incentive for lawmakers to work on overall GSE regulatory reform, the loan limit increases for the GSEs are limited to one year. Currently, Californians are forced into more expensive non-conforming jumbo loans, decreasing homeownership opportunities for many and forcing others into more costly - and often riskier - loan products. This package will allow for more homeowners, with home loans up to $729,750, to qualify for better programs and potentially better rates.   

While legislation is required to enact this package, Congressional leaders are indicating they will pass it soon.   

What this may mean is that for those with loan amounts between $417k and $750k there may be an opportunity to take advantage of the lower interest rate environment until the jumbo market starts to function efficiently again.  Please  let us know if we can do a comprehensive mortgage analysis for you or an associate.  

Lisa Balmes PC, e-Pro

Chris Balmes Properties


Brian Sharkey
SharkeyRE LLC - Singer Island, FL
Thank you for the info and blog.
Feb 01, 2008 11:20 AM
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Frankly, I have always thought conforming loans ought to have much higher maximum limits than what has now been proposed.  And I emphasize the word "conforming."  But then I also think people who have no money for a down payment and their closing costs aren't ready to borrow money to buy a house.

I know, I know.  I live in my own world.  Texans are like that sometimes.

Good blog.  Thanks for posting it.


Feb 01, 2008 11:40 AM
Eileen Liles
970-216-0530 - Cedaredge, CO
Macht-Liles Real Estate Group - Cedaredge, CO

Good post, Lisa,

An agent from CA told me several months ago that this was a huge issue for them.  As soon as a property price dropped below the loan limit, they had many more buyers.  Maybe that will jump-start the market

Feb 01, 2008 11:50 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
However the senate has NOT passed their version of the change so we do not have any thing to report YET.  We need to be carefully that the consumer doesn't get the idea that this has actually happened.
Feb 01, 2008 12:50 PM