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Conforming Loan Limits

November 8th, 2011 by [shareaholic app="share_buttons" id="27157108"]

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).

Conforming Loan Limits Vary By Property Type

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:

  • 1-unit properties
  • 2-unit properties
  • 3-unit properties
  • 4-unit properties

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.

Conforming Loan Limits Vary By ZIP Code

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.

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