Earlier this month, HUD announced the new temporary loan limits for FHA Mortgages as a result of the economic stimulus package passed earlier this year. Like conventional mortgages, The maximum FHA loan amount is $729,750 but will be adjusted per housing market based upon the median home prices for that market.In the Chicago MSA, the maximum loan limit for a single family home is now $410,000 up from $271,050 before the temporary increase. The new limits for 2- 3-, and 4-unit properties are $524,850, $634,450, and $788,450, respectively.
These increased loan amounts will make traditionally “jumbo” loans more affordable for more people and will hopefully allow many people who are currently in mortgages they cannot afford refinance to more affordable conventional and FHA loans (See FHA Offers Relief to Homeowners with FHA Secure).
These new loan limits will follow the same FHA guidelines as before. However, some lenders have already added some guidelines for these larger loan amounts. For example, one lender requires a second appraisal for any FHA loan that exceeds $417,000 and another lender requires at least a 580 FICO score for any FHA loan that exceeds the maximum mortgage amount before the temporary increase.
As I wrote in January 2008 (FHA Mortgages to Become More Popular) FHA loans will once again be a larger segment on the overall mortgage market than it has been in the past several years. The FHA Program has undergone many changes over the past couple years (see This is Not Your Father’s FHA)to better serve the mortgage needs of today’s market and bring it more into line with the conventional mortgage programs.
To see the new, temporary mortgage limits in your area, please go to: https://entp.hud.gov/idapp/html/hicostlook.cfm.
No comments:
Post a Comment