Great News! Fannie Mae and Freddie Mac have decided to keep the 2014 Loan Limits the same as 2013. This is good news for a couple reasons that might not be obvious at first. Primarily the benefit is that the “Temporary” High Balance Conforming Limits have stayed the same. What the heck does that mean? These are the loans that cover everything above 417k (Fannie & Freddie’s true loan maximums). These expanded limits are based on county. For example, San Diego’s High Balance limit is 546,250, while LA is 625,500.
These expanded limits were put in place as a stop gap measure during the mortgage meltdown so that folks with loans in that range could still get financing. For a while, there was not financing available for many people. Because these were deemed as temporary, we must expect that they could go away at any moment. If that does happen the implications could be pretty severe. So for now, we have another year to take advantage of these guidelines. But remember that it’s no guarantee that they’ll continue to be available.
So if you have a loan now, or plan on buying with a loan higher than $417,000 you’ll want to get your plan in place and make that happen before the end of 2014. Click my name below to email or call me to learn more about how to do that.