Freddie Mac base conforming loan limits are unchanged for 2009; Higher loan limits in certain high-cost areas

For 2009 we are maintaining the base conforming loan limits at the 2008 levels and increasing the conforming loan limits for certain high-cost areas based on the Federal Housing Finance Agency’s (FHFA) announcement [PDF] on November 7, 2008.

Base conforming loan limits

The base conforming loan limits for 2009 will remain at the following current levels:

Number of Units	Maximum Base Conforming Loan Limits for Properties NOT Located in Alaska, Hawaii, Guam & U.S. Virgin Islands	Maximum Base Conforming Loan Limits for Properties Located in Alaska, Hawaii, Guam & U.S. Virgin Islands
1	$417,000	$625,500
2	$533,850	$800,775
3	$645,300	$967,950
4	$801,950	$1,202,925

High-cost area loan limits

Last month we announced our requirements for the new higher loan limits in certain high-cost areas as set forth in the Housing and Economic Recovery Act of 2008 (HERA).

HERA raises the conforming loan limits in certain high-cost areas (where 115 percent of the area median house price exceeds the applicable base loan limit) to the lesser of 115 percent of the area median home price or 150 percent of the base conforming loan limits. We have termed mortgages that will be purchased under these higher limits as “super conforming” mortgages. Since the base conforming loan limit for one-unit properties remains at $417,000, the maximum conforming loan limit in designated high-cost areas is $625,500 for one-unit properties.

The maximum loan limits in designated high-cost areas for properties located in Alaska, Guam, Hawaii, and the U.S. Virgin Islands are higher than the base of $625,500 for one-unit properties.

In all instances, the loan limits for 2- to 4-unit properties are also higher.

For purposes of determining these high-cost areas, FHFA used a nationwide set of county median home prices estimated by the Federal Housing Administration. See the FHFA announcement [PDF] for details on the 2009 High-Cost Area Loan Limits and 2009 Loan Limits for All Counties.

Freddie Mac's super conforming mortgages

All Seller/Servicers are eligible to deliver super conforming mortgages provided they comply with Chapter L33 of the Single-Family Seller/Servicer Guide. Super conforming mortgages with note dates on and after October 1, 2008, are eligible for Freddie Mac settlements on and after January 2, 2009.

Effective January 2, 2009, we will purchase super conforming mortgages up to the following loan amounts:

Number of Units	Maximum Loan Limits for Super Conforming Mortgages*
1	$ 625,500
2	$ 800,775
3	$ 967,950
4	$1,202,925

* These are the maximum potential loan limits for designated high-cost areas. Actual loan limits for specific high-cost areas may be lower. In addition, the super conforming limits will be higher in certain high-cost areas in Alaska, Guam, Hawaii and the U.S. Virgin Islands.

Specific maximum LTV/TLTV/HTLTV limits are based on loan purpose, number of units, and occupancy. For designated high-cost areas where the maximum loan limit exceeds $625,500 for a one-unit property mortgage, the maximum LTV/TLTV/HTLTV ratio is 80 percent. Additional details will be communicated in an upcoming Single-Family Seller/Servicer Guide Bulletin. For more information visit our Super Conforming Mortgages Web page.

Operational impacts

Because the 2009 base conforming loan limits are unchanged from 2008, you can deliver mortgages that are within the base conforming loan limits, with no changes to your operational procedures or processes, including Loan Prospector® assessment and commitment and delivery.

We are in the process of updating Loan Prospector and the selling system to accommodate super conforming mortgages and will provide you additional details about those changes soon.