2007 Conforming loan limits remains unchanged at $417,000
The maximum conforming loan limit for single-family mortgages purchased by Fannie Mae and Freddie Mac will remain at $417,000 for most of the U.S.
For mortgages on two-family properties, the loan limit will continue to be $533,850, according to a Freddie Mac news release. The limit will hold at $645,300 for mortgages on three-family properties and $801,950 for mortgages on four-family properties. Properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands are eligible for higher limits.
The limit remains unchanged from 2006. The conforming loan limit sets the maximum size of a first mortgage the government-sponsored mortgage agencies Fannie Mae and Freddie Mac can buy or guarantee. Conforming mortgages generally carry interest rates one-quarter to one-half a percentage point lower than larger loans, known as jumbo mortgages.
The maximum conforming loan limit is based on the October-to-October change in the average house price.
[...] The “ceiling” and “floor” remian unchanged from 2006 , but many limits have been adjusted to reflect the changes in those specific areas. (FHA has individual limits within the national ceiling/floor limits that vary by Metropolitan Statistical Area or MSA). Keeping the same ceiling stays in line with Fannie and Freddie keeping their lending limits for 2007 the same as 2006 (see post). The Fannie and Freddie limit set the guideline for the FHA limits with the ceiling being a maximum of 95% of the conforming limit, the floor being 48%. HUD uses a complex system to calculate what the maximum loan guarantee is for each MSA. High cost areas are eligible for high loan limits, and a complete list of those areas is available on this spreadsheet. To look up limits in your area, use this link (do yourself a favor and bookmark it): https://entp.hud.gov/idapp/html/hicostlook.cfm. Mortgage limits in places like Alaska Guan, Hawaii and the Virgin Islands may have even higher limits. [...]