Fannie/Freddie Keep Loan Limit Rates Same for 2007

Fannie Mae and Freddie Mac announced that the 2007 maximum conforming loan limits will be identical to the 2006 limits. This is the first time in 14 years the conforming loan limit will remain unchanged.

The limit determines the maximum size of a conventional mortgage that companies may deliver to Fannie Mae or Freddie Mac for purchase or MBS pool issuance on or after Janurary 1, 2007. The limit is based on the October-to-October change in the average house price based on a federal survey.

The 2007 maximum first lien conforming loan limits are $417,000 for one-unit buildings; $533,850 for two-unit buildings; $645,300 for three-unit buildings; and $801,950 for four-unit buildings. The rates for Alaska, Guam, Hawaii and the U.S. Virgin Islands are $625,500; $800,775; $967,950; and $1,202,925.

The loan limits for subordinate lien mortgages remain at one-half of the first lien limits.

For more information, visit www.freddiemac.com or www.fanniemae.com.

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