Media reports give a misleading picture of FHA mortgage limits – Washington Post … Housing affordability down even in real estate slump – Washington Post Credit card’s newest trick: 79….
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Posts Tagged ‘fha mortgage limits’
Friday, December 18th
Friday, December 18th, 2009FHA Limits
Sunday, March 1st, 2009New 2009 FHA Limits
Starting January 1st, 2009, the HUD (Housing and Urban Development) has set new permanent maximum loan limits for FHA (Federal Housing Administration) Mortgages and FHA Refinance Loans, as part of the Housing and Economic Recovery Act of 2008.
Under the Housing and Economic Recovery Act of 2008 (HERA), passed in July 2008, the Federal Housing Finance Agency (FHFA) was established and aimed to set loan limits annually. The rules governing how the loan limits are established differ from the rules set forth in the Economic Stimulus Act of 2008 (ESA), which applies to loans originated in 2008. Under ESA, loan limits for high-cost areas were set at 125% of local house price medians and the maximum high-cost limit was 175% of the national conforming limit ($729,750 in the continental U.S.).
Since March 6, 2008, the FHA limits was changed into a range between $271,050 – $729,750 depending on location and the size of the home. Previously the FHA loans limit was $362,790. This is a part of the stimulus package in 2008 (referred to as the “FHA Forward” program). The more flexible FHA loan limit applies differently depending on its location and house size. For example, in populous areas with high cost of living such as New York City and Los Angeles the FHA loan limit for single-family homes could increase to the full $729,750 while in smaller city such as Denver, the FHA home loans could be just $406,250.
Now, the national loan limit for single-family homes in the lower 48 states has been pegged to a house price index chosen by the FHFA. The national loan limit for 2009 will remain at $417,000. In future years, the mortgage limit for any given area shall be set at 115% of the median house price in that area, as determined by HUD, it neither can exceed 150% nor be lower than 65% of the Freddie Mac national loan limit (now it’s called the “Floor” and the “Ceiling”). Alaska, Hawaii, Guam and the USVI may be adjusted to 150% of these limits to account for higher costs.
The new FHA Mortgage limits for 2009 are detailed below:
In areas where 115% of the median house price is less than 65% of the Freddie Mac limit, the FHA limits are set at the 65% amount, (called the “Floor”) as follows:
-One-Unit $271,050
-Two-Unit $347,000
-Three-Unit $419,400
-Four-Unit $521,250
Meanwhile in places where loan limits exceed ‘the floor’ the mortgage limits are set at the 150% amount, (called the “Ceiling”) as follows:
-One-Unit $625,500
-Two-Unit $800,775
-Three-Unit $967,950
-Four-Unit $1,202,925
In areas where 115% of the median home price is in between ‘the floor’ and ‘the ceiling’ the limit shall be at 115% of the median home price. Now, seeing at this new FHA mortgage limits, it may be the best time for you to consider an FHA refinance loan or an FHA mortgage. But, the FHA has been proved to be a fantastic help for the people of America in time of the Fantastic Depression, so the assurance I could get (and tell) is: it has been proven before. Excellent luck!
Read also: FHA Financing and FHA Mortgage Calculator
FHA Mortgage Limits
Thursday, January 15th, 2009FHA Reverse Mortgage Limits
When applying for a FHA reverse mortgage, you may want to know about the FHA reverse mortgage limits. These limits may affect you depending on the value of your house. In reality there are “hard” limits and “soft” limits.
A hard limit is the limit set by the FHA. At this time, 90% of reverse mortgages are FHA insured. Therefore, the limits set by the FHA are very vital.
As of this writing, the FHA loan limits varies from $200,160 and $362,790. The lower limits are applied to rural areas and the upper ones to large cities or states where the cost of living is higher. In addition, the limit can be adjusted up to 150 percent in Alaska, Guam, Hawaii and the Virgin Islands.
These limits are raised every year. But, to have a clear picture of how much you can borrow, you need to learn about the soft limits. Soft limits prevent owners of higher-priced homes to be able to borrow more than those with houses set at the FHA limit and also set the actual amount you can borrow.
The soft limit can be considered the actual limit for your property because it will determine how much you can borrow. The amount that you can borrow is calculated from the lower of the appraised value and the FHA limit.
The actual amount a homeowner can borrow depends on their age, the current interest rate, other loan fees and the appraised value of their home or FHA’s mortgage limits for their area. In general, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.
For example, a homeowner with a $100,000 loan at 9% interest could borrow up to 22% of the home’s value if he is 65. If the owner is 75, he could borrow up to 41%, and up to 58% if he is 85 years ancient.
Also, keep in mind that there are no asset or income limitations on borrowers getting this kind of mortgage mortgages. What this means is that you can have terrible credit or make no money or too much money and still qualify for the loan. Nobody can be excluded because income, assets, or credit history.
So, before you apply for this type of mortgage, talk to your trusted fha mortgage broker about the FHA reverse mortgage limits so that you can get a clear thought of how much money you can borrow by using a this mortgage.
Tags: fha insured, FHA Loan Limits, FHA Mortgage, fha mortgage broker, fha mortgage limits, fha reverse mortgage, fha reverse mortgage limitsNew loan limits set for FHA mortgages and FHA refinance loans.
Wednesday, November 19th, 2008Last week, HUD announced its new, permanent maximum loan limits for FHA Mortgages and FHA Refinance Loans that will become effective on Janurary 1st, 2009. These new maximum loan limits have been set as part of The Housing and Economic Recovery Act of 2008 and will be permanent limits.
Under the Housing and Economic Recovery Act of 2008 (HERA) , which passed in July 2008, the Federal Housing Finance Agency (FHFA) was established and directed to set conforming loan limits each year. The rules governing how the loan limits are established differ from the rules set forth in the Economic Stimulus Act of 2008 (ESA), which applies to loans originated in 2008. For example, under ESA, loan limits for high-cost areas were set at 125 percent of local house price medians and the maximum high-cost limit was 175 percent of the national conforming limit ($729,750 in the continental U.S.).
Starting January 1st, the national loan limit for one-unit homes in the lower 48 states shall be pegged to a house price index chosen by the FHFA. The national loan limit for 2009 will remain at $417,000. In future years, the mortgage limit for any given area shall be set at 115 percent of the median house price in that area, as determined by HUD, except that the FHA mortgage limit in any given area cannot exceed 150 percent of the Freddie Mac national loan limit, nor be lower than 65 percent of the Freddie Mac national loan limit.
This essentially makes the “Floor” and the “Ceiling” for the maximum FHA loan amount for a given area with the lowest maximum FHA loan amount being $271,050 in any area and the highest FHA loan amount being 625,500. Alaska, Hawaii, Guam and the USVI may be adjusted to 150% of these limits to account for higher costs.
The new FHA Mortgage limits for 2009 are detailed below:
In 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
Any area where the limits exceed the floor is known as a high cost area. In areas where 115 percent of the median house price exceeds the 150 percent figure, the mortgage limits are set at the 150 percent amount, i.e., the “Ceiling,” as follows:
One-Unit $625,500
Two-Unit $800,775
Three-Unit $967,950
Four-Unit $1,202,925
For all other areas, i.e., those where 115 percent of the median home price for the area is in between the floor and the ceiling, the limit shall be at 115 percent of the median home price.
These new FHA mortgage limits could mean that the time might be right for you to consider an FHA refinance loan or an FHA mortgage for your new home buy. If you would like more information on FHA mortgage loans or FHA refinance loans, please visit http://www.fha-101.com.
Tags: alaska hawaii, conforming loan limits, economic recovery act, economic stimulus, fha loan, FHA Mortgage, fha mortgage limits, fha mortgages, fha refinance loan, FHFA, Freddie Mac, future years, hera, housing finance agency, january 1st, loan limit, lower 48, maximum loan, median house price, medians, national loan, usviSearch :
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