HUD announced MORTGAGEE LETTER 2008-36 on November 7, 2008 for the new FHA loan maximum mortgage limits. My main concern is that the correct information is put out there for all to read. I have read a few blogs in the last few days that state that the mortgage under the current loan limits have to close or fund by January 1st, 2009, when this goes into effect. Fiction : This is not true by FHA's standards, but could be that of the lender that is putting that information out there.
In regards to the new FHA maximum mortgage limits, you have to have a FHA case number and credit approval prior to January 1, 2009 in order to use the old FHA loan limits. The old FHA loan limits was all part of the Stimulus Bill signed into Congress back in February of 2008. The higher loan limits were suppose to help those refinance that were in higher rate mortgages, jumbo mortgages, or those with adjustable rate mortgages with high end balances.
How does one dissect the new loan limits in each county? I don't want to bore you and give you language such as language that you would find in a law book. You basically have what are called 'Ceiling' and 'Floor' limits. These limits are based on a certain percentage of the medium house price in that county. The ceiling limit is set at $625,500 and the floor limit is set at $271,050. In layman's terms, basically your highest loan amount and the lowest loan amounts that are allowed for FHA loans. There are special exceptions to where the FHA loan amounts can exceed the ceiling limits. The potential loan limit is $938,250 in parts of Alaska, Hawaii, Guam, and the Virgin Islands. These higher limits account for the higher construction costs.
So, if you are sitting on the fence about purchasing or refinancing and your loan amount would be higher than the new FHA maximum loan limits in 2009, then you better act quickly, or forever hold your peace.
For a better understanding of these new FHA loan limits or to find out what your new county limit may be, please don't hesitate to contact me. jbelonger@ihmci.com thanks, Jeff
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