I know this is going to be a company by company thing, however, my company has announced that they will not be accepting loan locks on FHA "increased" loan limits after December 5, 2008. This means that any FHA Real Estate Loans going into our system after that date must conform with the 2009 FHA Loan Limits.

Since Lane County will be falling under the new minimum FHA Loan Limit of $271,050, from our current limit of $343,750, this will be a reduction of $42,700 in loan amount. At this time, I am not aware of other lenders cut off date for acceptance of the enhanced loan limit. I am sure this information will be forthcoming. I expect most lenders will be following pretty closely to this announcement.

Customers on the fence regarding their purchase in this price range should make certain they don't get left at the terminal when the train pulls out. Also of note, FHA minimum down payment goes up Jan. 1, 2009 to 3.5% from the current 3%.

Feel free to call me to discuss options under this program. I am always available for advice or just to talk.

authored by Fred Chamberlin, senior mortgage consultant, Eugene/Springfield Oregon, 541-342-7576