GSE Loan Limits remain unchanged through Q3 2011 in Alameda County

For the third year in a row agency loan limits remain unchanged. The maximum figures will apply to all mortgage loans originated before September 30, 2011 and are determined by rules established by the Housing and Economic Recovery Act of 2008 (HERA) and the Economic Stimulus Act of 2008 (ESA).

For the first three quarters of 2011 the conforming loan limit will be $417,000 with high cost loan limits going to $729,750 by county. Alameda county loan limit will be $729,750. This applies for both conventional and FHA financing.

With falling home prices or stability at best I think this is a good move. The Federal Housing Finance Agency (FHFA) has followed its existing policy that permits limits to be revised upward or remain unchanged; they cannot drop.

According to the FHFA, mortgage loans originated after September 30, 2011, the ESA rules will be used to determine limits and the maximum of $625,500 will apply.