The FHFA (Federal Housing Finance Agency) recently announced that conforming loan limits will remain at $417,000!
A quiet battle was waged within the industry after the announcement that they were considering reducing the loan limits. This would have made it more difficult for borrowers to obtain loans on properties in some areas. So this is great news. Here is an excerpt from the announcement by CAR( California Association of Realtors):
“C.A.R. applauds the FHFA for keeping with the law and retaining the existing Fannie Mae and Freddie Mac conforming loan limits. The FHFA recognizes that home prices have rebounded in California, especially in the high-cost areas, where lowering the loan limits would have reversed the housing recovery. Retaining the higher loan limits is critical to providing liquidity in today’s housing market and is essential to a full housing recovery.
Earlier this year, the FHFA announced its intention of lowering the loan limits. Since then, C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® (NAR) aggressively fought to prevent a reduction in the loan limits. C.A.R. and NAR both have long advocated for making higher conforming loan limits permanent, and as a result of our combined efforts, Congress made permanent the maximum conforming loan limits at $625,500.”
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