Higher loan limits

Loan limits are higher.

Through the American Recovery and Reinvestment Act of 2009, loan limits on mortgages secured by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) have been increased in high-cost areas, such as New Jersey*.

The home loan you can receive from the federally-backed agencies, Fannie Mae and Freddie Mac, can range between $417,000 and $729,750, depending on the county where the home is located and the loan program.

The ability to obtain a larger loan from a government sponsored enterprise opens up more options for buyers, and is one more positive reason to consider entering today’s market.

For local loan limits, click here.

Once at the page, you can select New Jersey from the dropdown menu and select the type of loan (FHA, HEMC, Fannie/Freddie) from the “Limit Type” dropdown list. Further instructions for the loan limit calculator are here.

* These limits were equal to the greater of 125 percent of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750.