On October 29, 2009, the House and Senate passed legislation to extend the current conforming loan limits for FHA and Freddie Mac and Fannie Mae (the government sponsored enterprises, or GSEs, that back much of the mortgage market in the U.S.) through December 31, 2010.  These loan limits, set at 125% of local area median home price and capped at $729,750, would have expired on December 31, 2009 in which case loan limits would have been reduced in many markets.

It's certainly welcome news for high cost areas like us here in Boston. 

So for all of 2010, the conforming loan limits will remain at $523,750 for single families and condos the Boston area (where they have been for much of 2009).  For the conforming loan limits for each county in the U.S., see this spreadsheet. 

Any loan above that amount is subject to jumbo loan rates which can be 1-2% higher in many cases.  Increasing the limit allows borrowers to obtain lower rates for loan amounts below $523,750, a more reasonable limit for areas with high prices like we have in the Boston real estate market.

Here are the 2010 conforming loan limits by county in Eastern Massachusetts for single family homes, condos, and 2 to 4 unit multifamily homes:

Boston-Cambridge-Quincy, MA-NH  (Metro Area)  Component Counties (MA): Essex, Middlesex, Norfolk, Plymouth, Suffolk

1 Unit: $523,750

2 Unit: $670,500

3 Unit: $810,450

4 Unit: $1,007,200

Providence-New Bedford-F. River, RI-MA  (Metro Area)  Component Counties (MA): Bristol

1 Unit: $475,000

2 Unit: $608,100

3 Unit: $735,050

4 Unit: $913,450

Duke's County

1 Unit: $729,750

2 Unit: $934,200

3 Unit: $1,129,250

4 Unit: $1,403,400

Nantucket County

1 Unit: $729,750

2 Unit: $934,200

3 Unit: $1,129,250

4 Unit: $1,403,400

 

 

If you have any questions, don't hesistate to contact me or comment below!