Fannie Mae and Freddie Mac place lower loan limits on mortgages they buy from lenders effective 10/1/11.

by Cristian on September 7, 2011

Starting Oct. 1, Fannie Mae and Freddie Mac will add limits on the size of mortgages they purchase from lenders — a move that likely will force future borrowers into the more expensive and harder-to-get jumbo loans, USA Today reports.

The changes would affect home loans of more than $625,500.

A number of large lenders — including Bank of AmericaWells Fargo and JPMorgan Chase — already have stopped taking new applications for affected loans so they can be sure they close the applications they have before the Oct. 1 deadline.

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