At the end of the year, two temporary loan programs will EXPIRE:

Conforming Jumbo Loans: $417,000 - $567,500

Jumbo FHA Loans: $362,760 - $567,500

NOTE: These programs will begin to phase out over the next 30-40 days as the year end draws near.  This means that waiting until next year could increase your payments substantially if you  are looking to buy a home in the $417,000+ range.

 

The Housing and Economic Recovery Act has established the permanent loan limits for 2009:

Conforming Loan limit: $417,000 – This is the same as 2008.  Now any loan amount over the $417,000 will be a Jumbo loan again (no more Jumbo Conforming Loans).  This is sad news because Jumbo rates are almost 2% higher than Conforming rates.   

FHA loan Limits: $506,000 for King, Pierce and Snohomish County:  This has gone up significantly from 2008.   This means a buyer can purchase up to $521,500 with 3% down.