We delivered an e-mail communication to all of you on September 20, 2011, titled "Extension of Conforming Loan Limits Fails in House." This communication referenced specifically the loan limits for mortgages guaranteed or insured by the government, such as FHA mortgages.
On October 1, 2011, yet another downward revision of loan limits will occur, for any conventional mortgage delivered to Fannie Mae or Freddie Mac. As of that date, these mortgages will be subject to the "permanent" high-cost area loan limits established by the Federal Housing Finance Agency (FHFA) under a formula of 115% of the 2010 median home price. That formula allows a maximum of $625,500 for single-unit property located in the continental United States.
A posting on FHFA's website sets forth the maximum loan limits that apply to loans acquired in calendar year 2011 and originated after 9/30/2011 or prior to 7/1/2007. These loan limits are broken down by state and then by county.
If you have any questions, please direct them to Keith McNamara, CATIC®'s Director of Industry Relations.