New Home Loan Limits! Fannie Mae has increased the conforming loan limit to $417,000
Fannie Mae has announced the conforming loan limit is now $417,000 for single family homes in 2006. It is estimated that an additional 466,326 homeowners would be eligible for a conforming loan.
Every Year Fannie Mae adjusts the conforming loan limits based on the median (average) price of homes - new homes and existing homes are included
Multi-Unit Loan Limits are as follows:
two-family loans: $533,850
three-family loans: $645,300
four-family loans: $801,950
The 2006 loan limit for second mortgages: $208,500
Conforming Loans for Properties in Alaska, Guam, Hawaii and the US Virgin Islands are 50% higher
Lenders will generally lend up to $417,000 for VA Loans
Additional info can be found here: FHA Loan Limits
In addition to FHA, VA and Conforming Loans there are Non-Conforming Loans with higher loan limits. These loans also have different underwriting guidelines such as variations in Loan to Value, credit scores, debt to income ratios, no income verification and many other attractive and interesting
guidelines and benefits.
This is an opportunity for homeowners to consolidate their debt and equity loans into one conforming loan with the higher loan amount. Right now there are thousands of Adjustable Rate Mortgages with 2 year, 3 year, 5 Year and 7 Year terms that will be converting into Adjustable Loans and the homeowner will no longer enjoy the fixed rate they have been used to.
