The Federal Housing Finance Agency (FHFA) announced their decision to raise the maximum loan limit conforming to Fannie Mae and Freddie Mac guidelines among the 39 high-cost counties in the upcoming year. Loan limits in some counties will remain at $417,000 per one-unit properties except for the selected counties.
FHFA stressed that the Housing and Economic Recovery Act of 2008 has already establish the baseline load limit and that after some periods of price declines, the baseline loan will not rise again until the property prices return to the pre-decline levels.
For countries like Denver, the decision made is favorable because buyers in the area are still struggling to purchase a home. According to Realtor.com, FHFA has also determined the average of home value in the US during the third quarter of the year. And it was found out that it remained below its level in 2007.
In California, particularly in Sonoma County, the loan limit is expected to rise from $520,950 to $554,300. In San Diego County, the rise will start from $562,350 to $580,750. The loan limit in the Denver areas such as Clear Creek County, Adams County, Denver County, Douglas County, Elbert County, Gilpin County, Arapahoe County, Broomfield County, Jefferson County and Park County will be from 424,350 to $458,850.
In the Boston area, on the other hand, the loan limit will increase from $517,500 to $523,250. The counties which belong to this area are Plymouth County, Essex County, Norfolk County, Suffolk County, Rockingham County, Middlesex County, and Strafford County.
The same will happen to the Nashville area with loan limits increase from $11,500, from $425,500. Under this area, the counties affected Cheatham County, Dickson County, Davidson County, Hickman County, Rutherford County, Macon County, Maury County, Sumner County, Robertson County, are Cannon County, Smith County, Trousdale County, Williamson County, and Wilson County.
And lastly, in the Seattle area with a loan limit increase from $517,500 to $540,500. The counties affected are Pierce County, King County, and Snohomish County.