California homebuyers will benefit from Fannie Mae's announcement this week that it will increase its single-family mortgage loan limit from $252,700 to $275,000 in 2001.

"The mortgage loan limit increase will permit an additional 18,500 California families to take advantage of savings provided by having a Fannie Mae mortgage," said C.A.R. President Gary Thomas.

The C.A.R. statistics do not include refinance activity.

"Fannie Mae's action more accurately reflects the cost of housing in California," Thomas said. "Statewide, the median price of a single-family home was $252,510 in October, but in some regions of the state the median price was significantly higher."

According to Fannie Mae, at the current spread between rates for a Fannie Mae mortgage and a jumbo mortgage, homebuyers will save up to $24,600 over the life of a 30-year mortgage.

Fannie Mae also announced new limits for multi-unit loans for 2001: two-family loans to $351,950; three-family loans to $425,400; and four-family loans to $528,700. The Fannie Mae loan limit for second mortgages will increase to $137,500.

The California Association of REALTORS* is one of the largest state trade organizations in the United States, with more than 95,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Published: November 29, 2000

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