As part of the economic stimulus plan signed into law last month (See Congress Agrees on Economic Stimulus Plan ... ) Congress authorized Fannie Mae and Freddie Mac to raise the maximum mortgage limit for conforming loans through the end of 2008. These temporary increases are to help the housing industry as well as make it easier for more people to refinance their mortgages. These increases will increase the liquidity of the mortgage market for many homeowners whose mortgages are above the current conforming limit of $417,000.After much debate as to how many people these increases will help (See Will the Increase in Mortgage Limits Help?), the OFHEO has published the new limits. While critics had estimated that only 15 counties will be affected, it appears that over 100 counties and metropolitan areas across the country will experience an increase from the current maximum.
Unfortunately, my home market of Chicago, IL, as well as many other markets, will not see an increase in the limits for conforming loans.
To see a list of all the areas with increased limits click here!
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