Higher Jumbo Loan Limits Extended to 2011

Published by nora | Filed under Buyer / Seller Tips, Market Trends, Mortgage / Finance, Real Estate

Prospective buyers of higher-priced homes in high-coast areas can still depend on Fannie Mae and Freddie Mac loans after the Federal Housing Finance Administration extended the granting of higher conforming loan limits to September 2011. Jumbo loans of $729,750 will still be available next year from mortgage lenders offering Fannie and Freddie loans for one-unit properties.

For two-unit properties, the loan limit would still be $934,200; for three-unit properties, the loan limit would still be $1,129,250; and for four-unit types, the loan limit would still be $1,403,400.

Starting in 2008, the FHFA implemented two loan limits for one- to four-unit properties – $417,000 for general areas and $729,750 for high-cost areas for one-unit properties – to help stimulate the housing market. The loan amount of $417,000 has been the ceiling for single-family homes in all areas of the country since 2006, an increase from $359,650 in 2005 and from $333,700 in 2004.

Loan limits are higher in certain areas because the median house prices in these areas are substantially higher. Additionally, loan limits are also higher in designated areas, including Hawaii, Alaska, the U.S. Virgin Islands and Guam. The complete list of counties and their loan limits is available on fhfa.gov/webfiles.

In California, among the high-cost areas are Los Angeles, San Francisco and Santa Clara, where the Silicon Valley is located. In San Diego, the loan ceiling is $697,500 for single-family homes, while in Sacramento, the loan limit is $580,000.

In Florida, only one county, Monroe, got the highest ceiling of $729,750 for one-unit properties. The next highest ceiling was in Collier, which got a limit of $531,250. Tied at third highest are Sarasota and Manatee, with a $442,500 ceiling. The South Florida counties of Palm Beach, Broward and Miami-Dade followed with a loan limit of $423,750.

Among the more known U.S. cities, the high-cost areas include Washington, D.C., New York, Salt Lake, Arlington in Texas and Arlington in Virginia. Seattle’s loan limit is $567,500 while Boston’s loan limit is $523,750. The loan limits for Atlanta, Denver, Chicago and New Orleans is $417,000, which is the general limit. The loan limits for Philadelphia, Miami and Nashville are $420,000; $423,750; and $432,500, respectively. The cities of Hawaii are unique in terms of their much higher loan limits – $793,750 for Honolulu; $790,000 for Maui; and $773,750 for Kauai.

Starting October 1 next year, after the nine-month extension, the loan limit for high-cost areas will revert to the loan limit set by the FHFA, which is equivalent to 115 percent of the median home price in 2010 and which is up to $625,500 for one-unit properties.