DES MOINES Wells Fargo Home Mortgage has raised its conforming loan limit to $265,000 in anticipation of the increases that Fannie Mae and Freddie Mac are scheduled to make later this month.
The entire industry, in fact, moved to the higher limits last week, according to an official of another mortgage company who asked not to be identified.
Wells began originating loans of up to $265,000 on Nov. 1, a Wells spokesman said. The aim was to help more borrowers buy homes and to get them a better interest rate during this short window, the company said.
Wells also bumped up the limit for Alaska and Hawaii, which is figured separately, to $397,500.
The GSEs conforming loan limit the largest loan they can buy is now lies $252,700. It is recalculated every year by the Federal Housing Finance Board, which uses its data to figure the October to October increase in average home prices, an official at Freddie Mac said. The change is made in late November.