Okay, the stimulus package has been approved. The President signed the Stimulus Package about a week ago. Part of this bill included HR 5140, which talks about the new FHA loan limits.
The FHA loan limits are suppose to hit a ceiling of $729,750, but when will this go into effect? There were some rumors that it would not be until around mid-March that this would go into effect. There are some rumors which state that this bill won't go into effect until late July. And two other unconfirmed reports state that it will be permanent and another stating that it will only last until the end of December of 2008.
Now, I know that they said the new Fannie Mae and Freddie Mac limits were going to expire at the end of 2008, but now the FHA limits? What's worse is that you can't really find the correct information. HUD doesn't even have any posted as of yet, what the real deal is.
Overall, what I don't understand is that Bill HR 5140 has been in Congress for almost 2 years now. It finally gets signed, but nothing has been put on paper for the investors to start originating these FHA loans with the new limits. You would have though that when they finally agreed on the new ceiling limit of $729,750, that this would have been ready. I know it can take some time within the government. But are we in a stalling period? The FHA reform in my opinion has been a huge disappointment. And we can't forget, that there will be risk base pricing attached to this new bill. There will be different MIP percentages depending on your credit scores and LTV's.
I had to write about this because I have been getting numerous e-mails and phone calls asking when this was going to take place. I know as much as the President, nothing. In all seriousness, who does know? What can read into memos handed out? By HUD? By the media? So many seem to have answer to this. But until I see the actual investors with the new limits, that's when I know it will be safe to say that we can now help you.
For any other mortgage needs, especially anything to do with FHA mortgages, please never hesitate to contact me.
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For more information on FHA loans, please go to this link. The FHA Expert
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!
Copyright © 2008 by Jeff Belonger
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