Secondary mortgage market companies Fannie Mae and Freddie Mac have increased conforming loan limits on single-family properties from $359,650 to $417,000, effective January 1, 2006. Next year's 16 percent conforming loan limit increase is the largest in 20 years, and reflects the October-to-October changes in average house prices, as published by the Federal Housing Finance Board. Loan limits will also increase on other properties: * $533,850 for mortgages on two-family properties (up from $460,400);* $645,300 for mortgages on three-family properties (up from $556,500); and* $801,950 for mortgages on four-family properties (up from $691,600).Under the Fannie Mae and Freddie Mac charters, loan limits in states and territories designated high-cost areas - Alaska, Hawaii, Guam and the U.S. Virgin Islands - are 50 percent higher than the amounts above.In separate announcements, FHA and VA will also raise their limits in 2006. Their limits, which are based on a percentage of the Fannie and Freddie conforming loan limits, will now automatically increase for those loans insured on or after January 1, 2006. The new FHA limit will be $200,160 which is 48 percent of the new conforming limit (i.e. $417,000). The high cost limit will be increased to as high as $362,790, which is 87 percent of the new conforming loan limit. However, since under the FHA program there is no nationwide limit, the U.S. Department of Housing and Urban Development will have to compute the individual limits for 3223 counties nationwide. HUD is expected to publish a new mortgagee letter announcing the areas that will be affected before the end of December.The effective maximum VA no downpayment loan limit will be raised to $417,000 on Jan. 1, 2006