The Federal Housing Finance Agency (FHFA) announced that conforming loan limits for 2009 will remain the same as loan limits of 2008, except in certain high cost areas which includes the Bay Area.
So we are all on the same page, conforming loans meet the standards set forth by Fannie Mae or Freddie Mac. Mortgages that conform to these guidelines are pooled together and sold to investors as mortgage backed securities, which is what keeps rates on 30 year fixed conforming loans lower than rates on non-conforming loans.
Currently in San Mateo County, the conforming loan limit is at $729,750 for a single family home. As of January 1st, 2009 we will be scaled back to $625,500. Although the lower loan limits may affect some San Mateo County home buyers, we are still well over the 2007 limits of $417,000.
The 2009 San Mateo County Conforming Loan Limits are:
- 1-unit properties : $625,500
- 2-unit properties : $800,775
- 3-unit properties : $967,950
- 4-unit properties : $1,202,925
If you are in the market to purchase a home with a loan between $625,500 and $729,750, you have about 50 days to take advantage of the current San Mateo County loan limits which will expire December 31, 2008.
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Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.
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