The federal government will reduce the size of loans eligible for government backing effective October 1.
As an emergency measure three years ago, Congress raised to as high as $729,750 the maximum loan amount that Fannie Mae, Freddie Mac and federal agencies could guarantee. Now those limits are set to decline in hundreds of counties across the U.S. as the government attempts to reduce its footprint in the mortgage market.
The new limits will vary by location, but will drop to $625,500 in top-tier markets such as New York, Los Angeles and Washington, D.C.
Contact us via "Comment" if you would like a list of reductions by major market.
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