Changes to Conforming Loan Limits

3/6/08

Fannie Mae and Freddie Mac have announced their latest effort to bring relief to American homeowners. As part of the Economic Stimulus Act of 2008 Fannie and Freddie will immediatley begin purchasing loans on the secondary market with a maximum principal obligation of 125% of the area's median home price. The maximum loan amount will increase from $417,000 to $729,500 in some areas. At this time, the change is only temporary and is set to expire 12/31/08. For a copy of the entire press release, please click here https://www.efanniemae.com/sf/mortgageproducts/index.jsp.

Who are Fannie Mae & Freddie Mac?

Fannie Mae and Freddie Mac are the largest purchasers of home mortgages in the secondary mortgage market. Their purpose is to assist mortgage bankers and other lenders by ensuring that they have enough funds to lend to home buyers at reasonable rates. During times of restricted liquidity such as what we have right now, Fannie and Freddie play a major role in keeping the dream of American homeownership possible.

What does this mean to the St. Louis, MO homeowner?

Well, nothing right now. Actually, the entire State of Missouri is deemed to be in an area that is not considered high-cost by the United States Department of Housing and Urban Development. Check back periodically as we will post any changes relevant to Missouri and the St. Louis area. For properties in other states that may be affected, click on the following link https://entp.hud.gov/idapp/html/hicostlook.cfm. To filter your search results, go to the Limit Type drop down box and select Fannie/Freddie.

Check back in a few days as we will be posting changes to the FHA Loan Limits that WILL affect those in St. Louis and other Missouri counties.

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