Congress took steps to reduce borrowing costs in some expensive markets, and add “jumbo conforming” loans to borrowers options.

• Conforming - mortgages eligible for purchase by Fannie Mae and Freddie Mac. The current limit is $417,000.
• Jumbo - mortgages with loan amounts that exceed $417,000. Rates on these loans have risen sharply in the past year as investors became more cautious in response to the credit crisis.
• Jumbo conforming - a new type of loan created to help borrowers in some high-priced markets. These loans can exceed the standard conforming limit yet are eligible to be purchased by Fannie Mae and Freddie Mac. The higher limits only apply to certain markets.
• The Federal Housinf Administration (FHA) also certain higher-limits. Borrowers can make smaller own payment, but also have to pay for mortgage insurance.