$729,750 Conforming Loans Reinstated May 1, With Some Conditions

Conforming loan limits have been reinstated for 2009 and most lenders should allow underwriting of these loans withing the next 1-2 weeks with a close date of May 1 and rates to be determined soon. This means consumers can apply for these loans now but the pricing might be ambiguous until more lenders start to release pricing. One reason to believe that $729k loans might be priced higher than $625k loans is that Fannie Mae’s announcement referred to $625k as permanent high-cost area limits and $729k as temporary high-cost area limits. See graph below, and see the full press release which also includes loan eligibility guidelines—more strict appraisal standards are just part of the ever-stricter guidelines.

Revised 2009 Conforming Loan Limits