Freddie Mac keeps cap on loan limits for first three quarters of 2011

By Susanna Moon

Chicago, Nov. 19 - Freddie Mac said the maximum conforming loan limits for the first nine months of 2011 will be unchanged from those in effect during 2010 as a result of the new calculations from the Federal Housing Finance Agency.

The base conforming loan limits applicable to non-high cost areas for all of 2011 remain:

• $417,000 for mortgages on one-unit properties;

• $533,850 for mortgages on two-unit properties;

• $645,300 for mortgages on three-unit properties; and

• $801,950 for mortgages on four-unit properties.

Maximum loan limits for the nation's high-cost areas for the first nine months of remain unchanged from last year, according to an agency press release.

The maximum high-cost limit is $729,750 for a one-unit single family property in the contiguous United States. Actual loan limits for a specific high-cost area may be lower than the maximum permitted loan limit, the release noted.

The maximum loan limits next year for high-cost areas are in effect for mortgages originated through Sept. 30, 2011, consistent with a congressional continuing resolution that extends the current maximum limits.

The continuing resolution sets the maximum loan limits for high-cost areas for the first nine months of 2011 as the higher of the maximum limits determined under the Economic Stimulus Act of 2008 and the Housing and Economic Recovery Act of 2008. These limits are updated annually by FHFA.

FHFA calculated the 2011 HERA loan limits and compared them with the ESA limits.

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