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FHA announcement New Loan Limit for 2009

Surprisingly we have Conventional and FHA limits being announced with in a few days of each other. HUD announced in it's mortgagee letter 2008-36 the new FHA limits for 2009.

12 counties in NJ fall into the "High Cost" limit for FHA included would be Monmouth and Ocean counties.

  • One-Unit:       $625,500
  • Two-Unit:        $800,775
  • Three-Unit:     $967,950
  • Four-Unit:       $1,202,925

If you notice, the High cost limits match the Fannie limits released on Friday. The question that is still left unanswered is: How will interest rates be determined for the higher limits?

Currently Base high cost limit on an FHA loan is about $362,800. Above that number the rate is considerably higher, and the limit is $729,000.  We are anticipating that the pricing on FHA loans will not have the add-on to interest rates until a loan exceeds$417,000, but we will not know that for sure until we start to see what the GNMA markets will stomach for this new Mortgagee letter.

So we still have an "FHA Jumbo" for 2009. And quite possibly an improved interest rate for our clients that are borrowing between $362k and $417k.

If you are curious about what your county limit is you can comment here with the county and state or send me an email and I can get you that information. It is a bit much to post all the counties in all 50 states in one blog!

have a great week

Rob

Robert Rauf

RRauf@REMN.com

REMN

Real Estate Mortgage Network

4 comments • Robert Rauf • November 10 2008 11:31AM

Comments

If you are currious about your area, please do not hesitate to ask.  I will keep you posted as we receive further information.

Posted by Robert Rauf (REMN The Real Estate Mortgage Network) about 1 year ago

Another step to get the train back on the track...we all need this type of action to move the industry forward..

Posted by Dan Brudnok - Realtor, e-PRO, ABR, CSP - Chester County RE Professional (Keller Williams - Exton - PA License Number #RS225179L ) about 1 year ago

Great information Robert, can you (briefly) give me some quotes for Nevada... Just as a preliminary idea about my area. 

Posted by Arina S. Hanciulescu about 1 year ago

Hi Arina,

here are the counties that I have listed for NV

32 005 Douglas County 23820 NV $350,750 $449,000 $542,750 $674,500
32 029 Storey County 39900 NV $325,450 $416,600 $503,600 $625,850
32 031 Washoe County 39900 NV $325,450 $416,600 $503,600 $625,850
32 003 Clark County 29820 NV $287,500 $368,050 $444,900 $552,900
32 510 Carson City 16180 NV $286,350 $366,550 $443,100 $550,650

 I would have to assume other counties not listed would fall into the Floor #'s:

areas where 115 percent of the median house price is less than 65 percent of the Freddie Mac limit, the FHA limits are set at the 65 percent amount, i.e., the "floor," as follows:

  • One-Unit:   $271,050
  • Two-Unit:    $347,000
  • Three-Unit: $419,400
  • Four-Unit:   $521,250

I hope that helps!

Posted by Robert Rauf (REMN The Real Estate Mortgage Network) about 1 year ago

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