2008 Conforming Loan Limit

Library

Conforming Loan Limits Effective January 1, 2008
Property Type	Continental U.S.	Alaska, Guam, Hawaii & the U.S. Virgin Islands
First Mortgages
1-Unit	$417,000	$625,500
2-Units	$533,850	$800,775
3-Units	$645,300	$967,950
4-Units	$801,950	$1,202,925
Second Mortgages
1-4 Units	$208,500	$312,750

Fannie Mae's 2008 Conforming Loan Limits
Remain Unchanged from 2006

Overview
Annually, Fannie Mae (FNM/NYSE) sets new conforming loan limits for owner-occupied property, as determined by the Office of Federal Housing Enterprise Oversight (OFHEO). The Conforming Loan Limits are based on monthly home price data gathered through a federal survey of lenders during the past year (from October to October). Averages are extrapulated from the data and become the Confirming Loan Limits. New and existing home are included in the survey.

For 2008, Fannie Mae estimates that an additional 466,326 homeowners will be eligible for a conforming loan. Conforming Loan Limits are 50% higher for Alaska, Hawaii, Guam and the U.S. Virgin Islands that the continental United States. Most loans Fannie Mae purchases are well below the conforming limit. During the first 9-months of 2006, the average loan size was $172,000.

Any loan that is above the Conforming Loan Limit is considered a "jumbo" loan and is considered riskier for the lender. Jumbo loans, investor loans, and doc types other than full documentation are considered "non-conforming" loans and result in a higher interest rate to the borower.

First Mortgages
The above first mortgage amounts apply to all conventional mortgages sold to Fannie Mae beginning January 1, 2008. Also included are mortgages originated before that date, provided the original loan amount is less than or equal to the new Conforming Loan Limits. Fannie Mae may purchase mortgage loans with higher loan amounts under prior contracts or commitments.

Second Mortgages
Although a second mortgage is less than or equal to $208,500 (or $312,750 for Alaska, Guam, Hawaii & the U.S. Virgin Islands), in order for Fannie Mae to consider the purchase,the original combined loan amounts of the first and second mortgages cannot exceed $417,000 (or $625,500 in Alaska, Guam, Hawaii & the U.S. Virgin Islands). These limits apply irregardless of whether Fannie Mae owns or has an interest in the first mortgage.