In recent weeks there has been much discussion in the Mortgage Industry as to how much the conforming loan limits for Fannie Mae, Freddie Mac and FHA (Federal Housing Authority) will be. Currently the conforming loan limits for Fannie Mae and Freddie Mac are $417,000 for a single family home. FHA loan limits are a little more complicated and varies based upon the county in which the home is as well as a few other factors which I will not be going into. Currently, in New York the maximum loan limit in the highest priced counties is $362,790.
The 2008 stimulus package signed by the President in February looks to push the loan limits as high as $729,750 for a single family home but this $729,750 will not be a national standard. Either way any way to increase loan limits in any part of the country will help new buyers as well as existing home owners. It may not be a perfect plan but at least it will be something more than we already have.