Conforming Loan Limits Stay the Same

Mortgage and Lending

The Federal Housing Finance Agency (FHFA) announced that conforming loan limits for 2009 will remain at the 2008 level, except in certain high-cost areas. The good news, however, is that mortgage interest rates have remained favorable as well. Combine this with lower home prices and an increase in inventory in many neighborhoods, and today's real estate market presents a variety of great long-term opportunities. Entire neighborhoods that you may not have been able to afford in 2005 could now be open to you!  


Below is an excerpt from the press release, in case you would like to review it. Please call me at your earliest convenience, and we'll discuss potential opportunities for you or someone you know in need of mortgage financing.


Conforming Loan Limit Stays $417,000 in 2009; Different Limits in Some Areas


WASHINGTON, DC - The Federal Housing Finance Agency (FHFA) announced the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties. The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009.


According to provisions of the Housing and Economic Recovery Act of 2008 (HERA), the national loan limit is set based on changes in average home prices over the previous year, but cannot decline from year to year. Loan limits for two-, three-, and four-unit properties in 2009 will remain at 2008 levels as well: $533,850, $645,300, and $801,950 respectively, for homes in the continental U.S.


These limits are set equal to 115 percent of local median house prices and cannot exceed 150 percent of the standard limit, which is $625,500 for one-unit homes in the continental U.S. The new limits affect loans purchased by an Enterprise in 2009, unless the loans were made permanently eligible for purchase under the Economic Stimulus Act enacted earlier in 2008 and has generally higher limits.


In calculating loan limits, FHFA used median house price estimates calculated by the Federal Housing Administration (FHA) of the Department of Housing and Urban Development (HUD). Those values have been estimated in a manner consistent with requirements of the National Housing Act. FHA has estimated median house prices for the purpose of setting its own loan limits.


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  1. Julie Staradumsky 11/12/2008 03:35 PM
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Debbie Salmon
keller williams - Vancouver, WA

Thanks for taking the time to post this ... excellent information

Nov 14, 2008 02:17 AM #1
Karl Peidl
Moorestown, NJ
Accredited Loan Consultant

Debbie - Thanks for stopping by.  If there is any other mortgage related info you would find helpful, just let me know and I'll blog about it.

Nov 14, 2008 07:45 AM #2
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Karl Peidl

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