San Diego and Surrounding Communities
The Federal Housing Finance Agency (FHFA) announced increased conforming loan limits for 2009 yesterday. The limits were revised under the American Recovery and Reinvestment Act which was signed into law on 2/17/2009. The new limits apply to all loans originated in 2009. (They have gone up - down - and back up over a six month period.)
The baseline limit remains at $417,000 for most areas in the United States. The conforming mortgage limit is the maximum size loan that Fannie Mae and Freddie Mac can purchase in 2009.
These limits depend on the property location. In San Diego County, a higher cost area, the limit for single unit properties is now $697,500. The table gives the conforming mortgage limits for 1 to 4 unit properties for San Diego County and neighboring areas. Loans above this limit are known as jumbo loans, and higher interest rates are almost always charged for these loans, and that is especially true right now!
| Location: | One Unit | Two Units | Three Units | Four Units |
| Conforming Limits | $417,000 | $533,850 | $645,300 | $801,950 |
| San Diego County | $697,500 | $892,950 | $1,079,350 | $1,341,350 |
| Imperial County | $417,000 | $533,850 | $645,300 | $801,950 |
| Orange County | $729,750 | $934,200 | $1,129,250 | $1,403,400 |
| Riverside County | $500,000 | $640,100 | $773,700 | $961,550 |
For other areas or more information visit the OFHEO (Office of Federal Housing Oversite) webpage.
Setting Conforming Loan Limits:
For single family (one unit) properties in high cost areas, the maximum loan limit is 1.15 times the median house price in the county (that’s a simplification…it’s more complicated in most metropolitan areas). The NEW maximum loan limit cannot exceed $729,750 (which is 1.50 times the 2009 conforming loan limit of $417,000), except in Alaska, Hawaii, Guam, and the Virgin Islands. Loan limits for 2-4 unit properties increase in proportion to the 1-unit limits.
References:
Federal Housing Finance Agency:
2009 Conforming Loan Limits Increased by the ARRA (American Recovery and Reinvestment Act)
OFHEO (Office of Federal Housing Oversite) Conforming Loan Information and Tables
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