Wednesday, November 30, 2005

Conforming Loan Limit for 2006

The Office of Federal Housing Enterprise Oversight "...announced the maximum 2006 conforming loan limit for single-family mortgages purchased by Fannie Mae and Freddie Mac. This limit, after the customary rounding down to the nearest $50, can be no higher than $417,000 for one-unit properties."

The conforming loan limit for 2005 for single-family property has been $359,650.

Please note: "The limit in statutorily designated high-cost areas (Alaska, Guam, Hawaii, and the U.S. Virgin Islands) will be 50 percent higher, for example, $625,500 for a one-unit, single-family mortgage."

For your information, if a loan amount is over the conforming loan limit, then it is treated as a "jumbo loan", which affects the loan interest rate and terms.

To read more: Conforming Loan Limit

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