I want to share some great news to start off your holiday season. The Federal Housing Finance Agency announced it will keep the 2014 maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac at $417,000 on one-unit properties in most areas and a cap of $625,500 in high-cost areas. What does this mean for Lodi? The maximum conforming loan limit for our area is $417,000 according to Carrie Nicholsky at Academy Mortgage.
The Lodi Association of Realtors applauds the FHFA for keeping with the law and retaining the existing Fannie Mae and Freddie Mac conforming loan limits. The FHFA recognizes that home prices have rebounded in California where lowering the loan limits would have reversed the housing recovery. Retaining the higher loan limits is critical to providing liquidity in today’s housing market and is essential to a full housing recovery.
Earlier this year, the FHFA announced its intention of lowering the loan limits. Since then, the California Association of Realtors and the National Association of Realtors aggressively fought to prevent a reduction in the loan limits. CAR and NAR both have long advocated for making higher conforming loan limits permanent, and as a result of our combined efforts, Congress made permanent the maximum conforming loan limits at $625,500.
Without the extension of the higher loan limits, many California borrowers would have a harder time obtaining financing for new home purchases and refinancing homes.
What a pleasure it is to bring you this good news. We take our duty to the public serious and providing you with up-to-date housing information is my privilege.
Sheri Aguilar is the president of the Lodi Association of Realtors and can be reached at Sheri@YourLocalAOR.com