The Federal Housing Finance Agency (FHFA) has announced that the 2009 conforming loan limits (representing the maximum loan amounts Fannie Mae and Freddie Mac can purchase) will remain at $417,000 for most areas in the U.S. This is the fourth year in a row where the maximum conforming loan limit has gone unchanged. In addition, FHFA announced 2009 "jumbo" conforming loan limits applicable in so-called "high cost" areas. The maximum 2009 jumbo conforming loan limit is now pegged at $625,500, down from the $729,750 maximum applicable in 2008. To view a copy of FHFA's release, click here. Links to the 2009 high-cost area loan limits and 2009 loan limits for all counties are available in the release itself.
Anytime there is a change in conforming loan limits, certain state high cost tests can be impacted. Specifically, the rules governing the applicability of a state's high cost test may be determined in part by reference to the then-current conforming loan limits. We wrote about this twice during 2008, first here and then again here. Similarly, the changes to this year's jumbo conforming loan limits will require modifications to our state-specific high cost tests to ensure that, where applicable, the appropriate jumbo conforming loan limit is selected for the state and county in which the security property is located. Please note that for both North Carolina and Tennessee, the changes in the Fannie Mae "jumbo" conforming loan limits will have no impact on their respective high costs tests.
Accordingly, the applicable loan limits in the states and counties listed below are as follows:
Indiana: | $417,000 - all counties |
Maine: New Mexico: | $417,000 - all counties $417,000 - all counties |
South Carolina: | $417,000 - all counties |
Texas: | $417,000 - all counties |
Dist. of Columbia: | $625,500 |
Georgia: | $417,000 - all counties except Greene County: conforming jumbo loan limit is $515,200 |
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New York: | $417,000 - all counties except Bronx, Kings, Nassau, New York, Putnam, Queens, Richmond, Rockland, Suffolk, and Westchester Counties: conforming jumbo loan limit is $625,500 |
California: | $417,000 - all counties except as follows: |
| $463,450: | Alpine |
| $474,950: | El Dorado, Placer, Sacramento, Yolo |
| $477,250: | Nevada |
| $483,000: | Monterey |
| $520,950: | Sonoma |
| $529,000: | Mono |
| $546,250: | San Diego |
| $561,200: | San Luis Obispo |
| $592,250: | Napa |
| $598,000: | Ventura |
| $603,750: | Santa Barbara |
| $625,500: | Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Clara, Santa Cruz |
The new jumbo conforming loan limits will be implemented into the applicable DocMagic state high cost tests beginning January 1, 2009. Please contact DocMagic's Compliance Department if you have any questions regarding this article.
The North Carolina High-Cost Home Loan Law applies to a loan if, among other things, the principal amount (or the maximum credit limit in the case of an open-end loan) of the loan does not exceed the lesser of $300,000, or the Fannie Mae conforming loan limit for a single-family dwelling. The Tennessee Home Loan Protection Act applies to a loan if, among other things, the principal amount of the loan does not exceed the lesser of $350,000, or the Fannie Mae conforming loan limit for a single-family dwelling.
The Texas high cost home law applies to a loan if, among other things, the principal amount of the loan does not exceed one-half of the Fannie Mae conforming loan limit for a single family, 2-, 3- or 4-unit dwelling. Because the DocMagic software does not currently capture number of units, in the case of a 2-4 family dwelling, the high cost test defaults to the highest, or 4-unit, conforming loan limit of $801,950.
The District of Columbia Home Loan Protection Act of 2002 (the "DCHLPA") applies to a loan if, among other things, the principal amount of the loan does not exceed the Fannie Mae conforming limit for a comparably sized dwelling. Because the DocMagic software does not currently capture number of units, in the case of a 2-4 family dwelling, the high cost test defaults to the highest, or 4-unit, conforming loan limit of $1,202,925.
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