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2008 Conforming Loan Limit Remains at $417,000

Fannie Mae and Freddie Mac have just announced that conforming loan limits for 2008 will remain at the 2007 level. The good news, however, is that mortgage interest rates have remained favorable as well. Combine this with lower home prices and an increase in inventory in many neighborhoods, and today’s real estate market presents a variety of great long-term opportunities. Entire neighborhoods that you may not have been able to afford in 2005 could now be open to you!

I have included a copy of Fannie Mae’s press release below, in case you would like to review it.

Fannie Mae's 2008 Conforming Loan Limit Remains at $417,000 Following OFHEO Announcement

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today announced that its 2008 conforming loan limits would remain at the limits set in 2006 and 2007, as determined by the Office of Federal Housing Enterprise Oversight (OFHEO). OFHEO's full announcement can be found at www.OFHEO.gov.

Limits for single-family mortgages purchased by Fannie Mae will remain at the 2006 and 2007 level of $417,000 for one-unit properties for most of the U.S. Limits for multi-unit loans for 2008 will be as follows: two-family loans $533,850, three-family loans $645,300, and four-family loans $801,950. The 2008 loan limit for second mortgages will be $208,500.

The maximum amounts for one-to-four-family mortgages and second mortgages in Alaska, Hawaii, Guam and the U.S. Virgin Islands are 50 percent higher than the limits for the rest of the country.

Fannie Mae is a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. Our job is to help those who house America.