Fannie announces new conforming loan limits

Fannie Mae announced its new conforming loan limits this week. Limits for multi-unit loans in 2006 will be $533,850 for two-family loans; $645,300 for three-family loans, and $801,950 for four-family loans. The limit for second mortgages will be $208,500 in 2006. The limits will be 50% higher in Alaska, Hawaii, Guam, and the U.S. Virgin Islands -- presumably as compensation for putting up with all of the tourists.

The single-family limit will rise to $417,000 in 2006, up from $359,650 in 2005, which Fannie Mae estimates will make an additional 466,326 borrowers eligible.