FHFA Housing and Recovery Act Rules Loan Guidelines
NEWS RELEASE
For Immediate Release
Contact:
Corinne Russell
(202) 414-6921
November 22, 2011
Stefanie Johnson
(202) 414-6376
Maximum Conforming Loan Limits to Remain Unchanged in All Counties But One in 2012
Washington, DC – The Federal Housing Finance Agency (FHFA) today announced that under terms set forth in the Housing and Economic Recovery Act of 2008 (HERA), the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2012 will remain at existing levels except in Fairfield County, Connecticut, where it will increase. A listing of the 2012 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here. The maximum conforming loan limits for one-unit properties, which generally have applied to loans originated since Oct. 1, 2011, are $417,000 in most locations, but are as high as $625,500 in certain high-cost areas in the contiguous United States. For loans originated prior to October 2011, the maximum loan limit was as high as $729,750 in the contiguous U.S. However, that higher “ceiling” was permitted under legislation that no longer applies to newly-originated loans. The 2012 loan limits are set under the permanent formula established under HERA.
Under the HERA formula, the 2012 maximum loan limit for one-unit properties in Fairfield County, Connecticut will increase by $26,450 from $575,000 to $601,450. The increase results from a rise in the local median home value, which is a key part of the HERA formula for determining local loan limits. While other counties also saw increases in home prices, Fairfield County, Connecticut was the only one for which the increase ultimately produced higher loan limits after other HERA terms (e.g., the statutory ceiling and floor on loan limits) were taken into account.
A detailed description of how the 2012 loan limits were determined can be found in the attached addendum. Questions regarding loan limits can be sent to LoanLimitQuestions@fhfa.gov.
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
NEWS RELEASE
For Immediate Release
Contact:
Corinne Russell
(202) 414-6921
November 22, 2011
Stefanie Johnson
(202) 414-6376
Maximum Conforming Loan Limits to Remain Unchanged in All Counties But One in 2012
Washington, DC – The Federal Housing Finance Agency (FHFA) today announced that under terms set forth in the Housing and Economic Recovery Act of 2008 (HERA), the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2012 will remain at existing levels except in Fairfield County, Connecticut, where it will increase. A listing of the 2012 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here. The maximum conforming loan limits for one-unit properties, which generally have applied to loans originated since Oct. 1, 2011, are $417,000 in most locations, but are as high as $625,500 in certain high-cost areas in the contiguous United States. For loans originated prior to October 2011, the maximum loan limit was as high as $729,750 in the contiguous U.S. However, that higher “ceiling” was permitted under legislation that no longer applies to newly-originated loans. The 2012 loan limits are set under the permanent formula established under HERA.
Under the HERA formula, the 2012 maximum loan limit for one-unit properties in Fairfield County, Connecticut will increase by $26,450 from $575,000 to $601,450. The increase results from a rise in the local median home value, which is a key part of the HERA formula for determining local loan limits. While other counties also saw increases in home prices, Fairfield County, Connecticut was the only one for which the increase ultimately produced higher loan limits after other HERA terms (e.g., the statutory ceiling and floor on loan limits) were taken into account.
A detailed description of how the 2012 loan limits were determined can be found in the attached addendum. Questions regarding loan limits can be sent to LoanLimitQuestions@fhfa.gov.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125