Federal Loan Limits Reduced for 2009 for LA & Orange Counties: Another Good Reason to Buy Now UPDATED

UPDATE: FEB 15, 2009

The newly passed $787.2 billion stimulus package will have an effect on Sylmar real estate in several ways. According to the California Association of Realtors, the legislation resets the conforming loan limit cap in Los Angeles County to $729,750, up from $625,500, and this will now be effective until December 31, 2009.

ORIGINAL POST:

On Friday the Federal Housing Finance Agency (FHFA), which regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks, announced that the national conforming loan limit for 2009 will remain $417,000 in most areas of the United States, except for certain “high-cost” areas, including Los Angeles and Orange Counties.

The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009, and is generally based on local median home prices.

The Economic Stimulus Act enacted earlier this year temporarily increased the loan limit for Sylmar real estate and other local areas up to a maximum of $729,750 for loans originated before December 31, 2008. Because the median home prices have dropped in Los Angeles and Orange Counties, the conforming loan limit has been reduced for 2009 accordingly.

These new conforming loan limits for the Los Angeles-Long Beach-Santa Ana metropolitan area (Los Angeles & Orange Counties) will apply to loans purchased between January 1, 2009 and December 31, 2009:

Max Limit

1-Unit

Max Limit

2-Unit

Max Limit

3-Unit

Max Limit

4-Unit

$625,500

$800,775

$967,950

$1,202,925

For more in-depth information about the announcement, please visit the Office of Federal Housing Enterprise Oversight.

Advertisements

Leave a comment

Filed under Lending information, real estate, Real estate Market, Sylmar

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s