Conforming Loan Limits Released For 2015
Conforming loan limits for 2015 was released by the Federal Housing Finance Agency (FHFA) with little alterations. This is including (Federal Housing Administration) FHA home loans.
Conforming loans are backed by the federal government and then sold to the secondary market as mortgage-backed securities. Loan limits are considered the maximum loan amount that the federal government is willing to finance and guarantee for private lenders.
The maximum amount remains untouched at $625,000 for most of the highest metropolitan areas throughout the country. New York and San Francisco is among several others. For one unit properties, such as condos, town homes and the average house would remain at $417,000 as well.
Loan limits are usually determined by calculating a certain percentage of a median home price for certain areas. Government-Sponsored Enterprise (GSE) loans tend to offer more advantages for borrowers, such as lower interest rates and down payments.
GSE Loans:
- Fannie Mae and Freddie Mac
- VA home loans
- USDA home loans
The FHA will continue to back up loans for buildings with multiple units, up to four units and a maximum of $1.2 million. Some of the largest loan limits are in parts of Hawaii, Guam, Virgin Islands, and Alaska for single-unit housing. The maximum loan limit is said to be up to $938,250.
FHA-insured Reverse mortgage loan limits remains untouched as well and remains at $625,000.
Jessica Lucas
