Question:

2007 jumbo mortgage limits

Answer:

The 2007 jumbo mortgage limits went up in 2008 for single family houses only. Also, the increase depends on the average house market price in the area. The 2007 conforming mortgage loan limits for single unit houses were set at $417,000 but the 2008 home loan limits can reach $729,750 in highest cost metropolitan areas like California.

Conforming mortgage loan limits were increased countrywide to help people living in expensive areas with homeownership. $729,500 is the upper limit for an area.

2008 Conforming Mortgage Loan Limits for First Mortgages

  • One-family: up to $729,750 depending on the median/average house price for the area
  • Two-family: $533,850
  • Three-family: $645,300
  • Four-family: $801,950
  • Loans in Alaska, Hawaii, Guam and the Virgin Islands have 50% higher first mortgage loan limits.

What are conforming and jumbo mortgage loans?

Conforming home loan limits are set by Freddie Mac and Fannie Mae. Loans for greater amounts are called Jumbo and Super Jumbo and are usually not bought by those two quasi-government entities on the secondary mortgage market. Hence, lenders charge higher rates on jumbos and super jumbos.

A jumbo mortgage is any loan exceeding the conforming loan limits. A Super Jumbo starts at $1 mil and can reach $10,000,000 or more.

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