To reflect the increase in the price of homes across the country, Fannie Mae and Freddie Mac have increased their conventional loan limits for next year.
The limits for mortgages on a single-family home will increase to $252,700, effective Jan. 1, 2000. This is a 5.3% increase over the current single-family limit of $240,000. The limits of mortgages on two-, three- and four- family homes are also increasing the same amount. The limits in Alaska, Hawaii, Guam and the U.S. Virgin Islands will increase by an additional 50%.