As I mentioned in my blog entry last month with this same title, both congress and the Bush administration have agreed to raise the conforming loan limit through the end of the year. This change is part of the economic stimulus package that was approved by congress recently.
For King, Snohomish, and Peirce Counties the conforming loan limit has been raised to $567,500.00. This is calculated on a new formula that is based on the median home price of the area, which allows Fannie, Freddie and the FHA to guarantee loans of up to that amount.
We must wait and see what the Banks will do with this change, but it is likely that conforming loans will be available in the greater Seattle area for up to that amount. A great help for individuals who intend to purchase a home or refinance with a loan between $417,000 and $567,500.00 by saving them approximately 1% of interest on their loan.
As more information becomes available on this topic I'll be sure to provide updates.
To check the loan limits your self click here.