Comments on: Huge Increase In FHA Loan Limit Passes Congress

By: Matt

Matt — Wed, 25 Jun 2008 14:27:41 +0000

What would this change mean to me: I want to purchase a house in Nashville, TN for $450,000? Could I get an FHA loan for that under the new rules? Would it be a jumbo loan rate or a conventional loan rate? Is there a maximum income level restriction? Is there a downpayment requirement?

Thanks.

By: Gary P

Gary P — Thu, 10 Apr 2008 15:44:28 +0000

Does the new ceiling on loans include refi’s? If so, is it now in effect.

By: Gregory W. Demos

Gregory W. Demos — Tue, 18 Mar 2008 21:56:05 +0000

I live in RI and have a 30yr Jumbo loan. According to my broker, RI had their stimulus jumbo status raised from $415 to $475. Gee thanks. Not only that, but since the paper is likely to be sold the points attached make it even less attractive. There is apparantly no provision for LTV/Income/or credit score either.

By: Irv Brechner

Irv Brechner — Wed, 12 Mar 2008 14:48:44 +0000

Is this new law in effect now? If not, when does it take effect?

By: Peter G. Miller

Peter G. Miller — Thu, 06 Mar 2008 11:09:37 +0000

Bill –

It would be reasonable to have official announcements while the program is actually up and running. There are lots of steps which must be taken and you can figure that all have been completed and tested by this point. So, I would imagine that in practice you’re right and that the pieces are in place to make higher loan limits for FHA mortgages a practical fact.

By: Bill Kuster

Bill Kuster — Thu, 06 Mar 2008 06:47:58 +0000

Looks to me like they acted yesterday?

By: A.Weisner

A.Weisner — Tue, 04 Mar 2008 20:08:13 +0000

By law, the HUD HAS TO change the limits on FHA passed by congress ON or BEFORE March 14th, 2008. Below is a link to a site that explains it even further. Hope this helps.

On February 13, 2008 President Bush signed into law the Economic Stimulus bill. This legislation included a temporary increase in the FHA loan limits, set to expire on December 31, 2008. The new limits, which will be published and effective no later than March 14, 2008, will be increased to 125% of local median home price (from 95%). In addition the loan limit floor (for lower cost areas) would increase from $200,160 to $271,050. In high cost areas the ceiling would raise from $362,790 up as high as $729,750. In addition, the HUD Secretary will have the discretion to further increase any local loan limit an additional $100,000

http://www.realtor.org/fedistrk.nsf/c2c6e17e27e92119852572f8005cd953/0ebfc026e2567fc8862571070073b616?OpenDocument

By: bailey

bailey — Tue, 04 Mar 2008 12:03:06 +0000

Has anyone heard anything further about when the FHA will increase?

By: Joe

Joe — Mon, 03 Mar 2008 18:26:30 +0000

You must discuss this with whoever is accomplishing the loan for you. If your rate was already locked as a jumbo, that can potentially become a problem with the lender who locked it. If that is the case and you have them appraise your home, that appraisal may not be transferrable. So to avoid any conflict, have your current loan officer/lender put something in writing that states - when the loan limit increase is executed, you will be able to receive the lower conforming rate.

By: Michael

Michael — Mon, 03 Mar 2008 14:03:14 +0000

My wife and I plan on closing a home mortage on the 14th of this month and we are in the same position waiting on the increase for just and additonal 15,000 increase. Our home insepection will be done this friday. Then we’ve heard it takes about exactly a week thereafter for the appraisel to come back and if all this is true we should be able to get into the home we want without having to come up with an additional 6,000 doallars to get the house we want. Other than that the only thing we can do is prolong the closing date and hopefully don’t miss out on the deal.