Conforming Loan Limit Extended thru 2011 – Great for Californians

mortgage loan limitsLegislation recently passed is extending the conforming loan limit for at least another year, thru 2011. The states that benefit the most are those where housing costs are above the national average, California being one of those states along with New York and Alaska.

The variance between conforming loans and non conforming loans can be anywhere from ½ percent to 1 percent. The loan limits are guaranteed by Fannie Mac, Freddie Mac and FHA up to $729,750.

To understand the significance, before 2008 the limit was $417,000, and if the extension was not granted the limit would have maxed at $650,000.

This benefits both those individuals just entering the housing market and those homeowners wanting to refinance.

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