Ready or not the new FHA loan limits are coming starting October 1st. 2011. It will be effective from that date until the end of the year and beyond unless legislation acts to extend them. So, if you haven’t found or refinanced your home yet or still in the process you might find yourself having to readjust. Now, for most home-buyers and homeowners the new loan limits probably won’t affect you because according to the Federal Housing Authority (FHA) they estimate that only a fraction of borrowers living in the nation’s highest cost areas will be impacted and that only three percent of FHA-insured borrowers lived in these high-cost areas.
FHA loan limits in 669 Counties out of 3,234 across the country though will be affected. For transactions that don’t close before the September 30th. 2011 deadline there are exceptions which would still allow your loan to close after that date and at the higher loan amount, so don’t panic yet. Your loan officer and lender should inform you on what those exceptions are. Now these new loan limits also apply to conventional (Fannie & Freddie) loans as well and will have a bigger impact for home-buyers and homeowners using conventional financing.
So, how much of a difference in the FHA loan limits are you looking at? Well, let’s take a look at the ceiling in the “Highest cost areas” before and after the deadline, they are as follows:
Ceiling in the “High cost Areas” Before & After October 1st, 2011
|Before October 1st. 2011||Effective October 1st. 2011|
For home-buyers and homeowners in Alaska, Hawaii, Guam, and the Virgin Islands where the loan limits are higher than the rest of the country the maximums are:
With the decline of home prices we have all seen, hopefully this change in loan limits won’t affect home-buyers too much who are looking to purchase as much as homeowners looking to refinance. If you need to find out or just curious on what the new FHA loan limits are for the county your property is in then check out the FHA Mortgage Limit page on the Housing and Urban development (HUD) website .
Only the 4 drop-down boxes are needed to get your loan limit information…
1. Sort by
3. Limit type – would be “FHA forward” which is for both FHA 203k and FHA 203b loans
4. Limit Year – would be Oct. 1st. through Dec.31st. 2011
For more details on the new role the FHA loan limits play on your current or future FHA loan whether it’s the 203k with renovations or 203B without contact the 203k Loan Specialist for your state.