As of January 1st, 2006, the conforming loan limits, set by The Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC) for single-family and multi-unit properties in Florida, and other contiguous States, District of Columbia and Puerto Rico will be increased as follows:

One-family maximum $417,000
Two-family (or duplex) maximum $533,850
Three-family (or tri-plex) maximum $645,300
Four-family (or quad-plex) maximum $801,950

The maximum loan limit for one-to-four-family mortgages in Alaska, Guam, Hawaii and the U.S. Virgin Islands are higher than the limits set for the rest of the United States:

One-family maximum $625,500
Two-family (or duplex) maximum $800,775
Three-family (or tri-plex) maximum $967,950
Four-family (or quad-plex) maximum $1,202,925

Conforming mortgage loans are mortgages that "conform" to the loan sizes that may be purchased by FNMA or FHLMC. Mortgages that exceed this limit are called "Jumbo" loans or mortgages and are sold as "Securities" on the secondary market.

When purchasing a new home or refinancing an existing mortgage, remember to consider these new conforming loan limits. Generally, Jumbo loans have interest rates approximately ¼% higher than conforming mortgage rates. For Jumbo sized purchase mortgages, you might consider a "Split Mortgage" to reach a conforming loan amount and conforming interest rate, as well as, avoiding PMI (private mortgage insurance). As always, you may contact us for any questions on the maximum loan limits and the remarkable "Split Mortgage" to save you money.

Contact BeechTree Mortgage and we will provide a very accurate Good Faith Estimate and answer any questions you have regarding this article. Call now at 1-888-399-0520

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