Historical Conventional Loan Limits

[NotCranky]

107 Report to Congress • 2007
Year
Single-Family Conforming Loan Limits1
1-unit 2-units 3-units 4-units
2007 417,000 533,850 645,300 801,950
2006 417,000 533,850 645,300 801,950
2005 359,650 460,400 556,500 691,600
2004 333,700 427,150 516,300 641,650
2003 322,700 413,100 499,300 620,500
2002 300,700 384,900 465,200 578,150
2001 275,000 351,950 425,400 528,700
2000 252,700 323,400 390,900 485,800
1999 240,000 307,100 371,200 461,350
1998 227,150 290,650 351,300 436,000
1997 214,600 274,550 331,850 412,450
1996 207,000 264,750 320,050 397,800
1995 203,150 259,850 314,100 390,400
1994 203,150 259,850 314,100 390,400
1993 203,150 259,850 314,100 390,400
1992 202,300 258,800 312,800 388,800
1991 191,250 244,650 295,650 367,500
1990 187,450 239,750 289,750 360,150
1989 187,600 239,950 290,000 360,450
1988 168,700 215,800 260,800 324,150
1987 153,100 195,850 236,650 294,150
1986 133,250 170,450 205,950 256,000
1985 115,300 147,500 178,200 221,500
1984 114,000 145,800 176,100 218,900
1983 108,300 138,500 167,200 207,900
1982 107,000 136,800 165,100 205,300
1981 98,500 126,000 152,000 189,000
1980 93,750 120,000 145,000 180,000

There seems to be an interesting correlation(too me) between rates of change in this conforming loans value and national house price appreciation.

In the last national price plateau or modest reversal, whatever it was, loan limit rate of increase slowed and then stopped for three years then barely creeped up for 3 more,1992-1997. Now it has been held steady 3 years in a row! Same correlation to be found during years of appreciation.
Fannie Mae limits seem to be adjusted to the market rather than juicing the market.Can’t be sure.Maybe it is a little of both adjusted for market expectations? That said 417K is a considerable amount of money relative to much of the country’s residential real estate.

[(former)FormerSanDiegan]

Fannie Mae is supposed to set the maximum conforming loan amount based on October-to-October changes in the mean home price. SO, the loan limits have historically tracked the housing market. The loan limits are a lagging indicator.

The interesting thing currently is that they are being allowed to keep them at the same limit, rather than being forced to lower the limit based on market conditions.

[(former)FormerSanDiegan]

Found an interesting tidbit on the OFHEO site
http://www.ofheo.gov/media/guidance/confloanlimguidance62007.pdf

I guess the OFHEO helps set the loan limit. In the past down cycle, they also did not reduce the loan limits properly and waited until the late 90’s to adjust by effectively making a smaller increase to the loan limit than the market would suggest.

It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again.

[NotCranky]

Thanks,
That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.

[poway_seller]

did you all hear that for credit scores below 680 investor guidelines now require 3/4 discount point on new mortgages? this went into effect jan 4th i think

660-679 1 pt
640-659 1.25 pt
620-639 1.75 pt
<620 2 pts if they even qualify.

interesting

[poway_seller]

did you all hear that for credit scores below 680 investor guidelines now require 3/4 discount point on new mortgages? this went into effect jan 4th i think

660-679 1 pt
640-659 1.25 pt
620-639 1.75 pt
<620 2 pts if they even qualify.

interesting

[poway_seller]

did you all hear that for credit scores below 680 investor guidelines now require 3/4 discount point on new mortgages? this went into effect jan 4th i think

660-679 1 pt
640-659 1.25 pt
620-639 1.75 pt
<620 2 pts if they even qualify.

interesting

[poway_seller]

did you all hear that for credit scores below 680 investor guidelines now require 3/4 discount point on new mortgages? this went into effect jan 4th i think

660-679 1 pt
640-659 1.25 pt
620-639 1.75 pt
<620 2 pts if they even qualify.

interesting

[poway_seller]

did you all hear that for credit scores below 680 investor guidelines now require 3/4 discount point on new mortgages? this went into effect jan 4th i think

660-679 1 pt
640-659 1.25 pt
620-639 1.75 pt
<620 2 pts if they even qualify.

interesting

[NotCranky]

“It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again”

Expectations granted.

Rustico said…
Got crow?
“That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.”

Well they probably won’t for the obvious 700k+ reasons!
I thought the methodologies were very reasonable. So much for the age of reason.

Hi Poway-seller, I wasn’t aware of that.

[NotCranky]

“It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again”

Expectations granted.

Rustico said…
Got crow?
“That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.”

Well they probably won’t for the obvious 700k+ reasons!
I thought the methodologies were very reasonable. So much for the age of reason.

Hi Poway-seller, I wasn’t aware of that.

[NotCranky]

“It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again”

Expectations granted.

Rustico said…
Got crow?
“That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.”

Well they probably won’t for the obvious 700k+ reasons!
I thought the methodologies were very reasonable. So much for the age of reason.

Hi Poway-seller, I wasn’t aware of that.

[NotCranky]

“It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again”

Expectations granted.

Rustico said…
Got crow?
“That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.”

Well they probably won’t for the obvious 700k+ reasons!
I thought the methodologies were very reasonable. So much for the age of reason.

Hi Poway-seller, I wasn’t aware of that.

[NotCranky]

“It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again”

Expectations granted.

Rustico said…
Got crow?
“That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.”

Well they probably won’t for the obvious 700k+ reasons!
I thought the methodologies were very reasonable. So much for the age of reason.

Hi Poway-seller, I wasn’t aware of that.

[NotCranky]

Thanks,
That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.

[NotCranky]

Thanks,
That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.

[NotCranky]

Thanks,
That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.

[NotCranky]

Thanks,
That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.

[(former)FormerSanDiegan]

Found an interesting tidbit on the OFHEO site
http://www.ofheo.gov/media/guidance/confloanlimguidance62007.pdf

I guess the OFHEO helps set the loan limit. In the past down cycle, they also did not reduce the loan limits properly and waited until the late 90’s to adjust by effectively making a smaller increase to the loan limit than the market would suggest.

It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again.

[(former)FormerSanDiegan]

Found an interesting tidbit on the OFHEO site
http://www.ofheo.gov/media/guidance/confloanlimguidance62007.pdf

I guess the OFHEO helps set the loan limit. In the past down cycle, they also did not reduce the loan limits properly and waited until the late 90’s to adjust by effectively making a smaller increase to the loan limit than the market would suggest.

It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again.

[(former)FormerSanDiegan]

Found an interesting tidbit on the OFHEO site
http://www.ofheo.gov/media/guidance/confloanlimguidance62007.pdf

I guess the OFHEO helps set the loan limit. In the past down cycle, they also did not reduce the loan limits properly and waited until the late 90’s to adjust by effectively making a smaller increase to the loan limit than the market would suggest.

It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again.

[(former)FormerSanDiegan]

Found an interesting tidbit on the OFHEO site
http://www.ofheo.gov/media/guidance/confloanlimguidance62007.pdf

I guess the OFHEO helps set the loan limit. In the past down cycle, they also did not reduce the loan limits properly and waited until the late 90’s to adjust by effectively making a smaller increase to the loan limit than the market would suggest.

It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again.

[(former)FormerSanDiegan]

Fannie Mae is supposed to set the maximum conforming loan amount based on October-to-October changes in the mean home price. SO, the loan limits have historically tracked the housing market. The loan limits are a lagging indicator.

The interesting thing currently is that they are being allowed to keep them at the same limit, rather than being forced to lower the limit based on market conditions.

[(former)FormerSanDiegan]

Fannie Mae is supposed to set the maximum conforming loan amount based on October-to-October changes in the mean home price. SO, the loan limits have historically tracked the housing market. The loan limits are a lagging indicator.

The interesting thing currently is that they are being allowed to keep them at the same limit, rather than being forced to lower the limit based on market conditions.

[(former)FormerSanDiegan]

Fannie Mae is supposed to set the maximum conforming loan amount based on October-to-October changes in the mean home price. SO, the loan limits have historically tracked the housing market. The loan limits are a lagging indicator.

The interesting thing currently is that they are being allowed to keep them at the same limit, rather than being forced to lower the limit based on market conditions.

[(former)FormerSanDiegan]

Fannie Mae is supposed to set the maximum conforming loan amount based on October-to-October changes in the mean home price. SO, the loan limits have historically tracked the housing market. The loan limits are a lagging indicator.

The interesting thing currently is that they are being allowed to keep them at the same limit, rather than being forced to lower the limit based on market conditions.

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