Question:

What is the 2006 jumbo mortgage limit?

Answer:

The 2006 jumbo mortgage limit between conforming loans and jumbos was set at $417,000 for single unit properties ($625,500 for Alaska, Hawaii, Guam, and the Virgin Islands).

What is a jumbo mortgage loan?

Jumbos and super jumbos are loans exceeding conforming loan limits as set by Freddie Mac and Fannie Mae. These loans are usually not purchased on the secondary mortgage market by government-backed institutions, so they carry higher rates.

2006 and 2007 conforming loan limits remained the same - $417,000 for single-unit properties.

However, for 2008 conforming mortgage loan amounts for 1-unit properties can reach $729,750 depending on the area median house value. This means that Fannie and Freddie will be buying loans for single unit properties in the range $417,000 - $729,750. Those loans would have previously been a jumbo mortgage and were bought mainly by private investors.

Even though higher loan amounts are now officially backed up by the government to alleviate home buying in expensive areas as Los Angeles, lenders are reluctant to offer those new jumbos with conforming loan rates.

Jumbos and Super Jumbos

The limit between jumbos and super jumbos used to be $650,000 - anything beyond that was considered a super jumbo. Currently, a super jumbo would be any loan exceeding $1 Mil.

Other Conforming Loan Limits

On the whole, conforming mortgage amounts for 2 to 4-unit properties in 2008 remain the same and are as follow:

  • $533,850 for two-family properties;
  • $645,300 for three-family properties;
  • $801,950 for four-family properties.

FHA-conforming loan limits are always lower than conforming loan amounts as per Freddie Mac and Fannie Mae.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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