The conforming loan limit that is effective on Jan. 1, 2011, has been released.
Conforming loans are mortgages that qualify for purchase by Fannie Mae and Freddie Mac. Each year, a new conforming limit is established.
A news release today from the regulator of Fannie and Freddie, the Federal Housing Finance Agency, indicated that during the first nine months of 2011, the maximum conforming loan limits will remain unchanged from 2010.
The nine-month requirement was set forth by the recently-enacted Congressional continuing resolution, Public Law Number 111-242.
“Under the continuing resolution, the highest loan limits that Fannie Mae and Freddie Mac may set for mortgages originated during the federal government’s Fiscal Year 2011 — which extends through September 2011 — are to be equal to the higher of the maximums determined under the Economic Stimulus Act of 2008 and the Housing and Economic Recovery Act of 2008,” FHFA explained.
That leaves the conforming limit at $417,000, though it can run as high as $729,750 in some high-cost areas located in the contiguous United States.
In its own statement, Fannie noted that revised “permanent” high-cost area limits will apply on loans originated after Sept. 30, 2011.
