FHA Home Loans, Santa Rosa, CA - New FHA Loan Limits and Proposals for 2010
I'm not a big fan of posting technical or industry news about lending because I think it's a dry subject, but I ran across this information today on FHA's Proposals and Loan Limits for 2010 and thought it would be good to share with my Realtors and real estate agents in the Sonoma County Wine Country Real Estate Market. Based on what I've read, FHA is cracking down on the smaller brokers.
I have a feeling these new rules will force many of the small brokers who currently originate FHA Home loans to either close up shop or join forces by combining their net worth in order to originate FHA Home loans. Or, the broker simply doesn't originate FHA Home loans and focuses on a nitch product. Either way, these new proposed rules by FHA, if the come to pass, will change how many of us in the lending world do business. If you want to read the proposals in detail, go to www.hud.gov. and read the Mortgagee Letter 2009-50.
Here are some of the highlights of the Proposals for 2010:
Brokers will no longer be approved by FHA to participate in their programs
Mortgage Brokers who originate FHA loans will be the responsibility of the sponsoring lender.
FHA Lenders will have to have a net worth of 2.5 million dollars, up from the previous $250,000
Conforming FHA loan limits will continue to be $417,000.
The Low Cost Area's FHA loan limits will remain the same at 2009. Currently, they are as follows:
- One - Unit $271,050 floor
- Two Unit $347,000
- Three Unit $419,400
- Four Unit $521.250
FHA Loan limits for High Cost Area's will also remain the same. They are currently at:
- One Unit $729,750
- Two Unit $934,200
- Three Unit $1,129,250
- Four Unit $1,403,400
BTW- Santa Rosa, CA is considered a high cost area. I believe all of Sonoma County is considered a high cost area. I hope this post on FHA Home Loans, Santa Rosa, CA - New FHA Loan Limits and Proposals for 2010 was helpful.
All of these FHA proposals will be effective on January 1st of 2010 if they are accepted. Also, the seal on this page does not constitute any support or backing from FHA. I just thought it was a cool seal to use with my post.