The 2004 'Conforming' Loan Limits
See also: Today's Mortgage Rates  | History of Conforming Limits  | FHA Loan Limits

2004 "Conforming" (FNMA/FHLMC) Loan Limits

Every year, new loan limits are announced for one- to four-family loans which may be purchased by the Federal National Mortgage Association (FNMA, or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac). These corporations are the two largest "secondary market" agencies -- corporations which purchase closed loans from mortgage lenders.

As announced on November 25, 2003, the "conforming" loan limits for 2004 are:

These new limits are effective for loans closed on or after January 1, 2004.

The maximum loan amounts for one-to-four family mortgages in Alaska, Hawaii and the U.S. Virgin Islands are 50% higher than the limits for the rest of the country.

"Conforming" loans are so called because the loan sizes 'conform' to the maximum loan amounts which may be purchased by the Federal National Mortgage Association (FNMA, or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac). "Jumbos" are mortgages with loan amounts which exceed the current FNMA/FHLMC limit. (Click here for a history of conforming loan limits.)

Homebuying Tip: If you're applying for a mortgage that's just above the current jumbo limit, but falls below the new conforming limit, be sure to ask your lender about getting you into the new limits listed here. By fitting in, you could shave as much as 3/8% off the interest rate you would have been charged!