New FHA loan limits

By
Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

HUD - fha loans & fha mortgages

 

As a result of the American Recovery and Reinvestment Act of 2009, the FHA loan limits have been raised again, after they were lowered several months ago. I don't like putting this information out until it's truly official. I had a few realtors e-mail me because their lenders said that the new changes were going to take place on February 15th. I am not sure how anyone could say that when it wasn't signed into law until February 17th, 2009. And Mortgagee Letter 2009-07 didn't come out until February 24th. My whole point to this is that you should never believe someone that says something should take place on such and such date unless they can show it to you in writing from HUD. Not from the lender, unless it's a lender's guideline change.

Example, there were 2 different loan officers that said credit scores were going to change to 620 around February 12th across the board with every lender. I asked this person where they heard this, an owner of his own mortgage company. His answer...  from 2 reps. The second loan officer said that a mandatory change was going to happen on February 27th, with all lenders, across the board. At 9:45 pm on the 27th, there are still a few investors that will allow me to go to 600 and I know two that will allow me to go to 530 and 500 credit scores. Again, you really need to be careful in who you listen to in today's market.This is just a mini rant because it has actually gotten worse with misinformation than it has gotten better.

 

 

fha loans and fha mortgages

Back to the FHA loan limits for 2009. Mortgagee Letter 2009-07 states that these new loan limits are effective for FHA loans that were credit approved in 2009 and will remain in effect until December 31, 2009. Another thing that irked me, because I saw a loan officer state that these new loan limits were good until November 2009. This was before the mortgagee letter even came out.

 

So, what are the limits?  They can vary from county to county. The new ceiling limits are as follows :

1 Unit - $   729,750

2 Unit - $   934,200

3 Unit - $1,129,250

4 Unit - $1,403,400

 

Now, there are exceptions to the high cost areas and these are for such areas in Alaska, Guam, Hawaii, and the Virgin Islands. There are maximums limits that are adjusted up to 150 percent above the ceiling limits. The reason being is because of property size and to account for the higher costs of construction. But in some of these areas, because of the formula, it's been found that the limits have not reached it's full amount, but that they have surpassed the ceiling limits for 2009.

 

Here are the floor limits, which are the lowest limits allowed. If you look up your counties limits and your county is not listed, then you resort to the floor limit.

1 Unit - $271,050

2 Unit - $347,000

3 Unit - $419,400

4 Unit - $521,250

 

Here is the link to find your counties limits. It has aready been updated with the new aounts.  - 

FHA county loan limits for 2009

 

 

 

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Experience & Knowledge at its BEST !!!

 

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For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!


Copyright © 2009 by Jeff Belonger

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______________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

 

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Comments (11)

Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Jeff ... I am constantly hearing new 'breaking news' that seems to be unfounded. With all the new bills and incentives, it's often tough to know whats fact and fiction.

Thanks for the link to the county limits, this is great info.

Feb 27, 2009 01:32 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Jeff - I sent out an email blast to all my Realtor friends with this before I left the office tonight.  This info is muy importante to get out on the streets.

 

Feb 27, 2009 01:45 PM
Jeff R. Geoghan
Coldwell Banker Residential Brokerage - Lancaster, PA
REALTOR, Marketing Manager

These are seriously high limits.  Do you think there is a point of diminishing returns on these limit hikes, given the FHA buyer profile?

Feb 27, 2009 01:48 PM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

This is why we rely on a select few of you here on AR to give us accurate information. I'm not surprised that people are lying or stretching the truth.

Feb 27, 2009 01:58 PM
Krista Fuchs
Prudential Fox & Roach - Exton, PA
Chester County Realtor - (484) 459-8025 - Home Buying and Selling

Thanks for the info...again!  I'm gonna check out that link to look up my county....since I'm not a Realtor buddy of Sardi!  guess I shoulda gone to the philly meetup!hmpf

Feb 27, 2009 02:16 PM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Hi Jeff!  Thanks for the link!  I read today that we're at $303K now--we were hoping for an increase but, it just wasn't meant to be, I guess!!

 

Feb 27, 2009 03:51 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

This is good news for buyers in area's where they are too low. We had our raised in Washtenaw County too and am posting on them soon.

Feb 28, 2009 12:53 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Good stuff.  I was pretty excited to see this stuff coming out.  Good info home boy!

Feb 28, 2009 02:12 AM
Loan Survivor Real Estate Financing Expert
Purchases, First Time Buyers, Pre-Approvals, Refinance - Birmingham, MI

Jeff, you'll get a kick out of this - in Michigan all L.O.' s not working at a federally chartered bank, have to be registered with the state by April 1st.  I just got a letter from the state that says their concerned that only 55 L.O.'s have registered out of the 10,000 they expected!

I'm keeoing my fingers crossed that a whole lot of them just disappear and take their baloney with them:)

Feb 28, 2009 09:05 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Hey Jeff,

Thanks for the link!   Interesting that WELLS FARGO has chosen NOT to implement these increased amounts that HUD put forth.    I appreciate the information and assistance as always!

Thanks again!  I have saved this post, as it will be a great one to go back to!

In addition, you couldnt be more right.....regarding your mini rants!  It never ceases to amaze me that other lenders slam the industry out of one side of their face, then give you a nice "floral" aroma the next...oh, and all in the same context!  Amazing!  Thanks for the straight talk, no fluff, and no BS!  That is TRULY what consumers want, and that is what WE should be focusing on!!!

Darin

One Source Mortgage, LLC

 

Mar 02, 2009 07:30 AM
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal

Jeff,  thanks for the link to the FHA loan limits.  It came up at an office meeting today.  I always like to see the source information instead of hearsay.

Mar 25, 2009 02:15 PM