WASHINGTON (11/23/11)—The maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2012 will remain at 2011 levels in all counties but one, the Federal Housing Finance Agency (FHFA) announced on Tuesday.
The lone loan limit exception for 2012 will be Fairfield County, Conn., where the maximum loan limit for single-family properties will increase to $601,450. The maximum loan limit for single-unit properties in that county was $575,000 in 2011, the FHFA said.
The Housing and Economic Recovery Act (HERA) of 2008 requires that Congress set maximum conforming loan limits each year. The maximum conforming loan limits are generally $417,000 but can be as much as $729,750 in certain high cost areas in the contiguous United States. The $729,750 maximum limit fell to $625,500 on Oct. 1 when a loan limit extension could not be agreed to by Congress. However, legislation that would return the maximum limit to $729,750, or 125% of local median prices for single family homes, through Dec. 31, 2013 was signed into law late last week.
For the FHFA release, use the resource link.