FHA Loan Limits In Connecticut

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

I should come as no surprise, that if Congress does not extend the current FHA Loan Limits by September 30th, that the FHA Loan Limits in the chart below will go into effect. 

 

FHA LOAN LIMITS IN CONNECTICUT

As I stated this news should not come as a surprise to most people in the Real Estate Industry.  This issue has been reported in the news media and blogged about on many websites.  What might come as a surprise to many, is that the change is not based on Loan Applications turned in by September 30th, or even the acquisition of FHA Case Numbers by September 30th.  The change is based on LOANS APPROVAED by September 30th.

That creates a much different time table than many were anticipating.  What this now means is that if a loan is turned in in and problems arise with obtain tax transcripts, verifying employment, or anyone of a number of things that could hold up loan approval, a loan could go from being within the FHA Loan Limits to not being anywhere close to the FHA Loan Limits.  This makes planning for this change far more complicated than originally anticipated.

If Buyer that needs to do a FHA Loan at the existing FHA Loan Limits, than they need to being going under contract right now in order to be relatively assured that they will not run into a problem.  This is a case that waiting could prove to be a very costly mistake.

Lets hope that this change does not come about, but we need to be prepaired for the worst, and hope for the best.

 

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 Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.
 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Rainmaker
592,907
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

George,

Looks like a great time to buy a really big home in Connecticut!

Bill

Aug 23, 2011 01:00 PM #1
Rainmaker
479,929
Kevin Kueneke
Caliber Home Loans - Encinitas, CA
San Diego Mortgage Banker

Many lenders have already stopped accepting applications for loan amounts that exceed the new limits.  We will probably stop about mid-September to make sure that the loans can still close by month end.

Aug 23, 2011 01:05 PM #2
Ambassador
854,069
Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

They just need to do the right thing and extend these loan limits.  This is going to cause issues nation wide.  Great post George and a well deserved feature!

Aug 23, 2011 01:30 PM #3
Rainmaker
412,651
Rodney Mason
Guaranteed Rate - Atlanta, GA
AL, GA, SC, & TN

CT is seeing much bigger drops than metro Atlanta.  We are going from $346,250 to $320,850.

Aug 23, 2011 01:39 PM #4
Rainmaker
842,617
Barbara Altieri
Kinard Realty Group - RealtyQuest Team, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

George -- I am keeping my fingers crossed this doesn't happen. Good point on the approval. I had not thought of that. We can only hope Congress doesn't deliver yet another punch to the housing market.

Aug 23, 2011 02:16 PM #5
Rainmaker
1,011,950
Corinne Guest
Corinne Guest, REALTOR® | Barrington Realty Company - Barrington, IL
Barrington Lifestyles

What I really have never understood is why in an area of median price range of  $600,000 but houses up to $14 million, my market, our limit has never got above $417000. I suppose what we never had we wont miss.

Aug 23, 2011 02:53 PM #6
Rainmaker
1,317,551
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

George -  We will have to sit tight and see what transpires.  I think congress is concerned about the housing market.  I'm cautiously optimistic.

Aug 23, 2011 03:57 PM #7
Rainmaker
601,332
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

George - We're going to see some pretty big drops here too.  In Los Angeles county we're going from $729,750 to $625,500 and in Ventura county were going from $729,750 to $598,000.  While that won't have an effect on most of my clientele (who are mostly 400k<) but it will have a negative effect on our jumbo market.

 

Aug 23, 2011 05:25 PM #8
Rainer
178,712
Rosalie Evans
Meritus Group Real Estate - Sioux Falls, SD
The Evans Group, Sioux Falls, SD Homes For Sale

I am curious to see if this happens and how it will effect the market. I can't imagine that it will be beneficial at all! I guess it remains to be seen!

Aug 23, 2011 05:29 PM #9
Ambassador
1,154,258
Bryan Robertson
Los Altos, CA

In Silicon Valley we're going to see the $729K limit drop back down to $625K.  However, I'm not sure that's going to hurt us much as we have had a huge surge in buying and the median home is still around the mid-$500s.  That said, it's possible Congress will extend the limits again given the turmoil with the stock market.

Aug 23, 2011 05:36 PM #10
Ambassador
902,187
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Dear George -
Lots of details for everyone in the RE business to keep up with every day.
Lucky for us REALTORS that we have great mortgage folks to rely on!
Have a happy day -
Lynn

Aug 23, 2011 07:21 PM #11
Rainmaker
1,048,895
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

George does the government understand how this is going to effect the Real Estate industry? Probably not as that would take logical thinking!!

Aug 24, 2011 12:48 AM #12
Rainmaker
90,505
Goran Utvic
606 Homes LLC | Chicagoland Brokers Inc, Chicago IL 60656 - Chicago, IL
We Buy & Sell Chicago Houses Fast

George - Great info, thanks. Can our government really afford to keep high limits?

Aug 24, 2011 01:35 AM #13
Rainmaker
1,317,958
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Hey George, congrats on the Feature.  Does this affect the country nation wide or is this predominantly on the east coast, the north east and the west with California affected the most?

Aug 24, 2011 11:43 AM #14
Ambassador
2,559,638
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George, it's amazing how the wise leaders in Washington just can't seem to grasp the reality that too much in the way of restrictions just goes to shut down progress. We all know where their heads are located!

Aug 26, 2011 03:16 AM #15
Rainer
422,958
Peggy Chirico
Prudential CT Realty - Manchester, CT
REALTOR® 860-748-8900, Hartford & Tolland County Real Estate

Hi George - Thanks for keeping us up to date! I really appreciate it.

Aug 26, 2011 11:20 AM #16
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