Fannie Mae, Freddie Mac announce 2006 loan limits

As a result of the new loan limit, it’s expected that as many as 466,326 homeowners will be eligible for conforming loans.

Conforming loan limits may adjust annually. The conforming loan limits adjustments are based on the October-to-October changes in the average home price, as published by the Federal Housing Finance Board. The board’s figures come from a monthly survey of lenders, and both new and existing homes are included.

The other Fannie Mae and Freddie Mac limits established for 2006 are $533,850 for two-family dwellings, $645,300 for three-family dwellings and $801,950 for four-family dwellings. Additionally, the 2006 Fannie Mae limit for second mortgages is $208,500. The new limits are effective Jan. 1.

Fannie Mae is a publicly traded company (NYSE: FNM) that operates pursuant to a federal charter with the mission of expanding homeownership, particularly among first-time home buyers and minorities.

Freddie Mac is a stockholder-owned company established by Congress to support homeownership and rental housing. Freddie Mac purchases residential mortgages and mortgage-related securities.