Fannie, Freddie conforming loan limits to be extended
This is good news from Reuters for those of you looking to take out a large home loan in the next year or so:
The Federal Housing Finance Agency said the maximum for the conforming loans — generally $417,000 for a single-family home but up to $729,750 in certain high cost areas — will remain unchanged in the first nine months of next year compared with 2010 levels.
The conforming, 30-year fixed loans must meet certain underwriting standards for loan-to-value and borrower credit scores and are put into Fannie’s and Freddie’s pools of guaranteed mortgage-backed securities.
The extension was dictated by a recently enacted Congressional resolution. The limits for high cost areas, generally on the east and west coasts, had been increased in a housing recovery bill passed in July 2008.
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