Each year new loan limits are announced which are important to those buying and refinancing real estate.
If you borrow at or below the conventional loan
limit for non-government
mortgages, you would have what is generally known as a "conforming"
loan.
If the amount borrowed is above the conventional loan limit, you would
have
a "jumbo" loan and face a somewhat higher rate because larger loans
imply
more lender risk.
There are also loan limits for FHA loans and for
VA mortgages. With
these federal programs, there are no "jumbo" loans in the usual sense.
For 2008 the loan limits look
like this:
For conventional mortgages (those which may be
purchased from local lenders by national organizations such as Fannie Mae and Freddie Mac), the
loan limits for owner-occupied properties are:
• One-unit properties: $417,000
• Two-unit properties: $533,850
• Three-unit properties: $645,300
• Four-unit properties: $801,950
• The conventional limit for second loans is
$208,500.
• For properties in Alaska, Hawaii, Guam, and the
U.S. Virgin Islands, the loan limits are 50 percent higher.
In theory, there is no limit to the amount lenders
can provide under
the VA program. In practice, local lenders in 2008 will generally lend
up to $417,000 with no money down. For additional
information regarding VA loans, see: http://www.homeloans.va.gov/veteran.htm
The FHA loan program also has loan limits for
owner-occupied homes under its 203(b) program, the most-common FHA
option. FHA limits vary according to whether you are in a "high cost"
or "low cost" area, or somewhere in between.
In general, the FHA loan limit for high-cost areas
is 87 percent of the conforming loan ceiling or $362,790 for a
single-family home in 2008. The floor is 48 percent of the convention
loan limit in low cost areas or $200,160 in 2008.
As with conventional loans, the financing limit is
higher for properties with multiple units -- two-to-four units with at
least one owner-occupied. To check the FHA loan limits for the
community where you wish to buy or refinance, please go to the FHA
loan limit page.
In addition to conventional, FHA, and VA loans,
there are also "non-conforming"
loans made by lenders. These mortgages often have higher loan limits
and other
attractive standards.
IMPORTANT:
Loan limits change from time
to time. For details regarding loan limits, for non-conforming loan
information,
and to confirm the information presented here, please speak with
lenders.
|
|