2010 FNMA Loan Limits Announced

The 2010 loan limits have been announced for and again there is some good news for people who want to purchase or refinance in most areas of DC, MD and VA.

These numbers apply to conventional loans but FHA limits generally the same in all areas. VA loan limits are actually higher in the most expensive regions but these have been slightly lowered. As a loan officer that specializes in VA loans please contact me for precise loan limit amounts depending on where you live.
The 2010 limits remain unchanged from 2009. That means for suburban DC and the city itself are $417k for a conforming limit all the way up to $729,750. Please note these are still considered "temporary". FNMA and FHLMC did not buy until very recently loans over 417k. When the mortgage market crashed it became impossible to obtain a loan over 417k very quickly. The GSE'S who buy the vast majority of our mortgages revised their rules and now purchase the so called jumbo mortgages. This has caused jumbo mortgage rates to fall just slightly over the so called conforming mortgages . Again this will be temporary until private banks and hedge funds purchase MBS Without government umm prompting there would virtually be no market for larges loans. When and if they exit the market expect this problem to return.

If you live in different parts of Maryland the limits can range to as low as 417k for a jumbo loan in Allegany county to a 560k loan limit in Anne Arundel, Howard, Baltimore and Baltimore City. In more rural areas this can buy alot of home but not quite as much in the Baltimore region. The same holds true in VA. The close in counties like Fairfax and Loudon are at $729,750 but is as low as 417k in say Scott county VA.

The price limits are derived from median home prices that are estimated by HUD. Bottom line the median home prices have been falling nationwide the last several years but the loan limits have raised. See there are obvious reasons to buy now ie, low rates and the homebuyer tax credit. Depending on where you live if you wait the limits could be lowered and you will not be able to get a mortgage at all. Think I am kidding, take a look at what interest rates where before the limits were raised and when banks started to pull out. I remember pricing over 417k loans at 8% or above. Many banks didn't even bother to offer, there was simply no demand. Take these changes and other ones such as no DTI allowed over 45% for the most case just shows it's getting harder and not easier to buy a home. This is why I think you need to move NOW and at least talk to a loan officer to see what can be done. Hopefully talk to me but I can't do all the loans so talk to someone that you can trust and take advantage before the rates and the loans are gone.