FHFA Sets $417,000 Conforming Loan Limit For 2009

Posted by Orb Staff on November 10, 2008 No Comments
Categories : Residential Mortgage

The Federal Housing Finance Agency (FHFA) says the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S., but it will have 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, the national loan limit is set based on changes in average home prices over the previous year, but it 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.

The national limit was left unchanged, at $417,000, based on declines in FHFA's monthly and quarterly house price indexes over the past year.

Source: Federal Housing Finance Authority

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