The San Francisco Chronicle summarized the conforming loan limit changes in a story today which includes historical context and rates. The Basis Point contributor Julian Hebron was quoted, saying that it’s possible that conforming loan limits might not actually be dropped to $625,500 permanently because the housing crisis is still in full swing. This is based on Hebron’s WeeklyBasis report this week where he said the following:
The 2009 conforming loan limits were announced at $417,000, with high-cost areas allowed to go up to $625,500 (which is 150% of $417,000). The announcement says that there is a 30 day appeal period for “those wishing to contest its median price estimates. Appeals are to be based upon data suggesting a potentially higher price median for a given area.”
This is a departure from past years when there was one limit nationwide. Setting loan limits by location is a new process brought about by legislative influence during 2008, and it’s possible limits could go above $625,500 for certain areas because of lobbying efforts or a new economic stimulus package that is widely expected.
That WeeklyBasis report also includes further analysis for consumers curious about how to handle the changing loan limits.