What Will Conforming and FHA Loan Limits be in 2010?

Share

Currently, the Seattle area has a "high balance" loan limit of $567,500 for single family dwellings with both FHA and conforming mortgages through the end of this year.

Do you remember when the 2009 loan limit's were announce?  In 2008, our loan limit was $567,500 when the "conforming/FHA jumbo" was created.  Since loan limits are typically based on median home prices, when 2009 loan limits were announced for Seattle, Tacoma and Everett, they were reduced to $506,000.   Congress passed legislation that rolled loan limits in certain (not all) high cost areas back to the 2008 limits which took months for the GSEs to implement and lenders to adopt. 

My point is, don't assume that $567,500 will be the loan limit for the Seattle/Bellevue area in 2010.   It's quite possible that based on current home values, the loan limits could be reduced.   If you are in need of a "high balance" mortgage, waiting may cost you having to use your cash reserves or not being able to finance your home as you had planned.

Speak Your Mind

*