For the county-by-county loan limit list, click here.
Conforming mortgages are appropriately named; they “conform” to the mortgage underwriting guidelines of Fannie Mae or Freddie Mac. Mortgages meeting these criteria are securitized on Wall Street as mortgage-backed bonds (MBS’s).
In 2011, for the 6th consecutive year, the 1-unit conforming mortgage loan limit is $417,000. The classification “1-unit home” stands for a single-family residence — either detached, condo, rowhome, or townhome.
As authorized by Congress and signed into law by the White House, the official conforming mortgage loan size limits are, by property type:
Anything over 4-units is considered a commercial property and cannot be originated through Fannie Mae or Freddie Mac.
Note, though, that these maximum conforming loan limits are just a starting point. The actual loan limit varies by market.
Not every home is subject to the $417,000 Fannie Mae loan limit. Some homes — specifically those in “high-cost areas” — are granted loan limit exceptions that range all the way up to $729,750.
“High-cost” is defined by the median sales price of a region.
The good news is that jumbo and super jumbo mortgages are plentiful right now and the pricing is excellent — you just have to know where to look.
Ben Gerritsen is a mortgage specialist, he resides in Ogden, Utah. He serves the Utah, Colorado, Texas & Florida.
Contact Ben for a personalized quote based on your personal needs.[shareaholic app="share_buttons" id="27157108"]