Conventional loans are secured by government sponsored entities or GSEs such as Fannie Mae and Freddie Mac. Conventional loans can be made to purchase or refinance homes with first and second mortgages on single family to four family homes.
In general, Fannie Mae and Freddie Mac's single family, first mortgage loan limit is $417,000. This limit is reviewed annually and, if needed, changed to reflect changes in the national average price for single family homes.
2009 Conventional Loan Limits
First mortgages
- One-family loans: $417,000
- Two-family loans: $533,850
- Three-family loans: $645,300
- Four-family loans: $801,950
Note: The above loan limits do not reflect the national average high cost loan limits. Please contact us for details.
Loans which are larger than the limits set by Fannie Mae and Freddie Mac are called jumbo loans. Because jumbo loans are not funded by these government sponsored entities, they may carry a different interest rate and could carry additional underwriting requirements. A strategy to lower your overall interest payments if your purchase or refinance balance is above $417,000 is to contact a GL Financial Mortgage Loan Consultant, to discuss your specific financial needs.
In addition to common loan structures such as fixed rate, adjustable rate and balloon loans, Fannie Mae and Freddie Mac also have loan programs for low down payments, community lending and affordable housing initiatives.