Conforming Loan Limits - 2006

Every year, new loan limits are announced for home loans which may be purchased by the Federal National Mortgage Association (FNMA, or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac). These corporations are the two largest "secondary market" agencies - corporations that purchase closed loans from mortgage lenders.  As announced on November 29, 2005, the conforming loan limits for 2006 according to the subject property's type are as follows:

• 1 Family     -     $417,000 (up from $359,650)

• 2 Family     -     $533,850 (up from $460,400)

• 3 Family     -     $643,500 (up from $556,500)

• 4 Family     -     $801,950 (up from $691,600)

These new limits are effective for loans closed on or after January 1, 2006.  The maximum loan amounts for one-to-four family mortgages in Alaska, Hawaii and the U.S. Virgin Islands are 50% higher than the limits for the rest of the country.  Conforming loans refer to loan sizes that 'conform' to the maximum loan amounts which may be purchased by the Federal National Mortgage Association (FNMA, or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac).