UPDATE (NOV. 5, 2009): The new, higher Fannie and Freddie conforming loan limits have now been extended through 2010 by Congress (more info on that here). Congress also updated and extended the $8000 tax credit for home buyers today.
NOTICE: If you're visiting this post for the first time, please read all the way to the comments at the bottom for the latest updates.
***UPDATE (APRIL 28, 2009): 2009 Freddie and Fannie conforming loan limits FINALLY able to be used****
I actually missed this being part of the discussion in the stimulus package, but it's certainly welcome news for high cost areas like us here in Boston. I previously wrote about the 2009 Freddie and Fannie conforming loan limits for Boston being lowered this year, but now it looks like they are being bumped back up.
In the stimulus bill, the conforming loan limits are being raised to $523,750 for the Boston area. Currently the limit is $465,750, which means any loan above that amount is subject to jumbo loan rates which can be 1-2% higher rates in many cases. Bumping the limit allows borrowers to obtain lower rates for any loan amount below $523,750, a more reasonable limit for areas with high prices like we have in the Boston real estate market.
UPDATE (MAR 1, 2009): Here is a chart of the new limits by county in Eastern Massachusetts.
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
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2009 Boston Condo Market Report
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