Five Brothers

Freddie Mac Bulletin 2013-25


Bulletin Number 2013-25

November 26, 2013

 

TO: Freddie Mac Sellers

SUBJECT: 2014 LOAN LIMITS

 

In line with the Federal Housing Finance Agency (FHFA) announcement today regarding 2014 loan limits, Freddie Mac is announcing that its base conforming loan limits and high-cost area loan limits will remain at the existing 2013 levels with the exception of some counties where the high-cost area loan limits will increase.

 

For Mortgages with Freddie Mac Funding or Settlement Dates on or after January 1, 2014, the base conforming loan limits ($417,000 for 1-unit properties in the contiguous United States) and the maximum loan limits for high-cost areas will remain at the current levels.

 

As a reminder, the Housing and Economic Recovery Act of 2008 (HERA) provides the formula for FHFA to determine the loan limits for high-cost areas. The HERA terms specify that the maximum allowable limit for high cost areas must not exceed $625,500 for a 1-unit single-family property in the contiguous United States, although actual loan limits for a specific high-cost area may be lower than the maximum permitted amount.

 

In all instances, the loan limits for 2-to 4-unit properties and Mortgages secured by properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands are higher.

 

Sellers must review the 2014 loan limits permitted for a specific county, which FHFA makes available on its website at http://www.fhfa.gov/Default.aspx?Page=185.

 

REVISIONS TO THE GUIDE

We have updated Guide Section 23.3, Maximum Original Loan Amounts for Home Mortgage Purchases, to reflect the 2014 base conforming loan limits and Section L33.2, Maximum Original Loan Amounts for Super Conforming Mortgages, to reflect the high-cost area loan limits for super conforming Mortgages with Freddie Mac Funding or Settlement Dates on or after January 1, 2014 and on or before December 31, 2014.

 

CONCLUSION

If you have any questions about the changes announced in this Bulletin, please contact your Freddie Mac representative or call (800) FREDDIE.

 

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