Each year, the government sets the maximum allowable loan size for a conforming mortgage, based on “typical” housing costs nationwide.
Loans in excess of this amount are typically called “jumbo loans“.
While home prices increased from 1980 to 2006, so did conforming loan limits. Since then, however, as home prices have dipped, the conforming loan limit has held.
Now, in 2010, for the 5th consecutive year, the government set $417,000 as the nation’s conforming mortgage loan limit.
The 2010 conforming loan limits, as released by the government, are:
But conforming loan limits don’t apply to all U.S. geographies equally. As a result of various economic stimuli since 2008, the government now considers certain regions around the country “high-cost” areas. In these areas, conforming loan limits can range to $729,750.
There are less than 200 such areas nationwide. The complete list is published on the Fannie Mae website.
The mortgage guide lines are getting tougher with the lenders in Knoxville. We are seeing loans take longer to get closed, appraisals are taking longer etc. I don’t see it losing up much in 2010 but just getting tougher for everyone. So if you are buying or selling a home in the Knoxville area just have patience and it will get done. The government is making it tougher on everyone to get a home closed and it just takes alittle more time.
If you need any help or have any questions please feel free to give me a call at 865-675-8326 or email [email protected]