Entering 2011 begins the inevitable (by current regulations) end of the Fannie Mae High Balance Loan Limits. Fannie Mae has already announced the the 2010 High Balance Loan Limits will remain in effect only through September 30, 2011.
Currently, the maximum loan limit for a Fannie Mae loan is $729,500 in high cost area and this will remain in effect for loans originated on or before September 30, 2011. Loans originated after September 30, 2011 will be reduced (at the maximum levels) to $625,500 one one unit properties in the continental United States as established under the Housing and Economic Recovery Act and have been designated by FNMA as “permanent”.
Currently Conforming Loan Limits are set as follower
Units Contiguous States,
District of Columbia,
and Puerto Rico
One $417,000
Two $533,850
Three $645,300
Four $801,950
To determine the maximum loan amount, please refer to the following link:
https://entp.hud.gov/idapp/html/hicostlook.cfm
Under Limit Type select Fannie/Freddie. For the time being select 2010. FNMA has commited to update the site in early 2011to reflect the new lower loan limits for your county/state.
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Deborah "Dee Dee" Garvin
NMLS #279125
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Thanks for this update, Deborah. I did not know this. Useful information for buyers thinking of waiting.
Jane, Super important in your market area...a drop of over 125K and an increase of interest rate at least 1% AND down payments probably around 20%. Should get some consumers thinking about the future, eh?
Thank you Deborah :) I was wondering if the limits changed. Seems like the new year coming will have some changes that we have to pay attention to. What is Mea Culpra? Thank you for your suggestion about my verbage, I changed it.
Christina, Ahhh, a slight misspelling on my part: mea culpa (please forgive me...or something like that)
Deborah, this is good information for buyers in every state - thanks for the heads up! Need to check on where our numbers will go.
Thanks for the post. That really makes no sense in my markets Wash, DC, and Arlington, VA. It's hard enough for home buyers as it is here with even older, un-updated single-family homes or small 3-BR townhouses selling in the $700s. P.S. mea culpa translates as "my mistake" or "my own fault" sort of like "my bad."
I'm glad you're keeping up on this, and for some in that price range it's important to know these things. Nice, informative video Deborah.
Happy new Year Beborah;
This information is helpful to me in my market. Do you doany loans in Massachusetts? I could certainly use some more closing business.
Deborah, love your video. You really come across very well. I look forward to seeing your other vlogs. Happy New Year and much success to you in 2011! Congrats on the feature, too.
Rosy picture ahead for 2011, eh? Great video, Deborah - keep them coming!
I did not know this either. We have homes in the millions here and the limit is $417000, now thats a little odd.
Solid information for those with higher loan balances and a great reason to get off the fence.
I love the way you have incorporated video into your blogging. Don't you hate when YouTube catches your face right when you're getting ready to blink for the still photo. My video did the exact same thing to me earlier today. :)
Thanks for updating us on this information. Great time for people to get off the fence before it is too late.
Frank and Sharon, Helping consumers understand housing affordability is crucial is the current market. Waiting and sitting on the fence will likely cost money, even if the property loses another 5 to 10 percent in value. Thanks for your comment!
Meg, Thanks for the official definition...appreciate it much!! The return to standard loan limits looms large for your market and mine!
Carla, Hey, my friend, how are you? Hope the information helps your clients.
Elliott, Hope the info helps! Sorry, I no longer do loans nationally...the NMLS licensing system makes it almost impossible unless I went back to the big box banks....and I would switch to real estate before that happens!!
Pamela, Hey, you, Thanks! My first posted video since the conference (long story). Not perfect, but I am trying to get over myself and focus on implementation, not perfection!
Lori, I don't know about rosy, but I am praying and expecting better!
Corrine, Check out the link to see what your high balance loan limits are. The pricing about 417K is pretty negligible currently.
David, Anything I can do to end fence sitting (my current mantra)!!!! Hey, this was my first video and I just decided to go for it. With any luck I will improve. LOL!
Harry, Seems that fence sitting is a popular metaphor today! LOL! Heres hoping........
$417K is the limit in most of the counties I do business in, except for Greene County where the higher limit is in effect. With the average price of a Lake Oconee lakefront home above $700K in 2010 - lowering those limits will have a true impact on the cost of owning those luxury lakefront homes.
Jeanne, We are in a situation much like the 8K tax credit "gimme" of last year. The increase in loan limits was intended to spur the market, there has never been an intent to leave it at the higher amounts. Make no doubt about it: That is a train coming down the tracks!! LOL!!
You guys in CA will definitely feel it much more than us in GA. All of GA only had one county that qualified and its about an hour outside of Atlanta.
PaffordHomes, You and I are going to need that link in the coming months!! :)
Rodney, You are correct, my market is going to be impacted significantly! Prices have reduced, of course...but average loan amounts are well north of 350K in SoCal. Ouch!
In our area we don't worry too much about HIGH loan limits! Our average home sale is under $100K so we don't normally worry.
Hopefully the higher loan limits won't be allowed to expire as that's not going to help our market to recover.
Hi Deborah -- I wonder if they are doing this to decrease liability or if this is keeping in lockstep perhaps with lower property values
Erica, Your situation resembles the majority of the country; which is exactly why I stand by my comment to Paul (above). I do not anticipate this ruling will be changed.
Christine, Well I applaud hope, I don't think there is rationale or desire to extend the limits (please understand, my thoughts and comments have nothing to do with my personal beliefs or desires of whether they should stay or go...I am totally detached in my observations).
Chris, It is important to understand that the rulings are to return to "normal" market standards....it really has little to do with liability or lower property values. Just like it was unrealistic for people to think the 8K tax credit was going to be repeatedly extended; it is also unrealistic to think the Fed is going to extend buying MBS indefinitely and/or continue to manipulate the housing market. Again, my humble opin.