Home : Blogs : Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans : Mortgage Knowledge at its BEST!!!! (Jeff Belonger)

FHA loan limits -- up, up, and away......

arrow pointing up

Lately I have been reading so many comments stating that they don't see much FHA activity in their area because home values are higher than the FHA loan limits in that particular area. Here is a list of the current FHA limits : https://entp.hud.gov/idapp/html/hicostlook.cfm

Believe it or not, FHA/HUD approved new loan limits about 1 1/2 years ago. The next step is for congress to vote on this new bill and to accept it. President Bush already has ink on his pen, already stating that he will approve this new bill after it is accepted by congress. FHA Loan Limit Adjustment Act of 2007 (Introduced in Senate) This bill was introduced into the Senate on July 17, 2007. For more on this bill, please read [S.1805.IS] And on July 24, 2007, Mr. Menendez, a Senator from New Jersey, was added as a cosponsor of bill S . 1805 (Senate - July 24, 2007)

Overall, this Bill was read twice and referred to the Committee on Banking, Housing, and Urban Affairs. This was done last on July 17, 2007. We are all hoping that they convene on this matter by late September. I don't have any news when they will meet next, but I will update this and make a major announcement when this date is agreed upon.

Here is another bill that is separate from the the loan limits for single family homes. The other bill is for multi family homes, meaning 2 to 4 family. This bill is below.

FHA Multifamily Loan Limit Adjustment Act of 2007 (Introduced in House) This bill already was introduced into the House back on January 4th, 2007 For more on this bill, please read [H.R.127.IH]

Summary : With the mortgage meltdown in the beginning of the year and the chances for more foreclosures, you will see this bill passed. Now, this is my own opinion, but it involves common sense. Most of California, parts of Florida, New Jersey, and many other areas where the medium priced home exceeds the FHA loan limits, will make it easier for them to pass this bill. FHA was established in 1934 and has a proven track record in homeownership. Let's just hope this happens sooner than later and that this bill is not delayed any longer.

______________________________________________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert You can also go to this group : The FHA Mortgage Group

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

Posted by Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans on 09/04/2007 11:34 PM

Comments (15)

fha, fha loan limits, bill s 1805, bad credit, less than perfect credit, mortgage meltdown, fha loans, fha mortgages, new jersey mortgages

This post has been included in New Jersey Information Camden County, NJ Information Cherry Hill, NJ Information

15 Comments on FHA loan limits -- up, up, and away......

SEP

2007

Jeff, I think an increase in the loan limits is necessary! I am anxiously waiting all the news on FHA changes headed our way!

Jeff - I will be watching for the new numbers and look forward to seeing what will be happening.

SEP

2007

Kim..... I think many of us are looking forward to that day. I am going to do some more research later this week to see if I can find out a date that they will meet. thanks

Thesa.... as I told Kim, I think many of us will be waiting for these new loan limits. Just hurry up... ;o)

Jeff - I talked with our DE underwriter today about this. She is checking all day long on any announcements and will email me when she gets an update. I can email you what I get if you are interested?

So much hangs on FHA and its future. It's a little scary when we put all of our eggs in one basket, but that's how it is.

I believe the bill will be passed. The increase and other proposed changes should help to attract more buyers.

Hi Jeff,
It sounds like we may be getting good news on the loan limits. Hopefully, this will give the market the nudge it needs. Keep us posted.

Jeff,

I wonder when they will sign on the dotted line, also I just print out all of your posts regarding FHA and I use it as my Study Guide, so Thank you again!! I also answered your question on my last post!

Take Care Jeff,

Tom Weiss

The FHA limit here hovers just above median and average prices. It is reasonable :)

Jeff, I haven't read the bill. But FHA limits in finite numbers will always be out of date. What we need is some other measurement to keep pace with frowing markets.

Bill Roberts

SEP

2007

Jeff - Always back for more info and hurry up and wait:) Thanks!

Will the Democrats drag on this as we move into an election year? What I mean is... they don't want the Republicans touting about how they 'saved' the people....

.....so how do they play the GAME to make it appear, or factually,to be the white knight?

We all know the games played in Washington... the people (you know - human beings) these bills would affect are insignificant in the Political battlefield.

Jeff - as usual, great info and links.

Kim.... sure, please keep me posted. If you hear before me, all the better. Let's just spread the word.

Rosario.... I don't think we have all of our eggs in one basket. There are more programs than FHA... besides, I have mentioned this many of times, but I would bet 25% of the loans done subprime in the last 5 years could have been done FHA.. it's those that did hurt past clients, who now need that other basket to fill.

Derrick.... I totally agree. I think there is no reason to pass this bill. Thanks for your feedback.

Cynthia.... keeping the fingers crosses.... thanks for stopping by.

Thomas W. ..... thanks Tom..... in regards to signing on the dotted line? They have some fear.... they are backed into a corner. There is so much. In any case, thanks for your support.

Renee..... that's good to hear. I don't follow your market, so thanks for keeping some of us informed. You will see a slight change in higher loan amounts even for your area, so that should be good.

Do you see many FHA loans in your market? thanks

Bill.... I don't think always out of date. They are in a good and healthy financial position. Maybe they just read the market a little better and try not to jump the gun like other investors per se. Just my opinion.... but look at even the good borrowers that have gone into foreclosure and some of these are on larger loan amounts.

Paula...... thanks Paula.... but I am not feeling like myself, since the wind has been taken out of my sail, because of some comments on another one of my posts. Just a recent post. It's almost like, damn if I do and damn if I don't. Thanks for stopping by.

Rob...... you do bring up a very interesting point. Just as the Democratic's take on the war, putting our soldiers at risk per se.... defending political views just for votes. In any case, that is a touchy subject and it just makes you wonder.

Thanks for your input and for the compliment.

SEP

2007

Jeff - I personally think that they should evaluate the numbers on a metro by metro basis. I know that the limits are already higher in Alaska, Hawaii, Guam and the U.S. Virgin Islands. Why not NY? NJ? California? or any of the other areas where home prices are much higher? On Long Island, average homes with an 80/20 loan fall into the Jumbo category. These are often times very good buyers that are being priced out of areas due to the Jumbo rate jump.

SEP

2007

Did I miss where limits may go.. rumor I heard was possibly to $650,000 which means I migh be able to use an FHA loan for the first time in.. what 20 years... FHA has never given any thought to the CA market since the 70's

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?