The Mortgage Reports

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Conforming mortgages are appropriately named; they "conform" to the mortgage underwriting guidelines of Fannie Mae or Freddie Mac. Mortgages meeting these criteria are securitized on Wall Street as mortgage-backed bonds.

As mortgage performance has weakened, however, lending standards have tightened.  Today's would-be borrowers are asked to document more income, deeper reserves, and higher credit scores.  One underwriting area that hasn't tightened, however, is the maximum allowable loan size.

For the 5th consecutive year , the 1-unit conforming mortgage loan limit is $417,000.

As released by the Federal Housing Finance Agency, the official 2010 conforming mortgage loan size limits are, by property type:

• 1-unit properties : $417,000
• 2-unit properties : $533,850
• 3-unit properties : $645,300
• 4-unit properties : $801,950

Note, however, that maximum conforming loan limits vary by market. Counties in which "typical" home prices dwarf the conforming loan limits are declared "high-cost" areas. Each gets its own, individual conforming loan limit that ranges up to $729,750.

For example, a home in Denver, Colorado is capped conforming at $417,000 but a home in Snowmass, Colorado gets clearance up to $729,750.

Same for Mason, Ohio and Athens, Ohio.  Mason's maximum loan size is $417,000; Athens' is $432,500.

And, too bad for residents of tony Chicago neighborhoods -- Lake Forest, Lincoln Park, Hinsdale and elsewhere.

Because each of the Chicagoland counties are a melange of housing types and socioeconomic class, none have sufficiently high median sales prices to justify the High-Cost Treatment. According to the government, Lake County is not high-cost, Cook County is not high-cost, Dupage County is not high-cost, and neither are the collars.

Mortgages that exceed conforming loan limits are considered "jumbo" or "super jumbo". Excellent pricing is still available, you just have to know where to look.  And it's not at Fannie Mae.

There are 197 designated high-cost areas in the U.S. -- just 6% of the country. For the majority, your 2010 conforming loan limit is $417,000. To find your local market's loan limit and confirm it, check the Fannie Mae website.

Dan Green is an active loan officer. Reach Dan via email at or call toll-free to 877-DAN-GREEN.