2009 FHA Loan Limits Announced

by Peter G. Miller
November 10th, 2008

The new FHA mortgage limits for 2009 have been announced by HUD.

Actually there are three sets of limits, a limit for homes in lower cost areas (the “floor”), limits in “higher-cost” areas and limits for areas outside the continental United States: The limits look like this:

Floor

___One-Unit — $271,050
___Two-Unit – $347,000
___Three-Unit — $419,400
___Four-Unit — $521,250

Higher-Cost Areas

___One-Unit — $625,500
___Two-Unit — $800,775
___Three-Unit — $967,950
___Four-Unit — $1,202,925

Alaska, Guam, Hawaii and the Virgin Islands

___One-Unit — $938,250
___Two-Unit — $1,201,150
___Three-Unit — $1,451,925
___Four-Unit — $1,804,375

The FHA loan limits are related to the conventional loan limit which is announced each year by Federal Housing Finance Agency. For 2009 the conventional loan limit will be $417,000, unchanged from 2008.

Which FHA loan limit applies to a property you want to finance or refinance? To answer that question check with a lender. Do not go house hunting until you’re certain which loan limit applies in your situation.

It’s important to check with lenders because the definition of a “high cost” area can change. That is, lenders in a lower-cost area can appeal to HUD to be redefined as a “high cost” housing area and thus qualify for larger FHA loans.

HUD does have an FHA loan limits page online, however borrowers will get far more information from lenders.

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This entry was posted on Monday, November 10th, 2008 at 4:17 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

12 Responses to “2009 FHA Loan Limits Announced”

  1. Angela Kea Says:

    what are the documents i need before i sign up for a loan with fha?

  2. Mary White Says:

    What is the criteria for being able to obtain an FHA Loan. Is it available for refinance?

  3. Karen Wallace Says:

    for getting a FHA loan, what is going to be the required score to botain the loan. Most people’s credit was lowered when they lost and job or if their situation changed.

  4. Dee Dee Says:

    I am looking to buy a home or townhouse. I am a firt time home buyer. I would like to apply for the $8.500.00 stimulus to go towards my down payment. Where would I apply and what other information do I need to get started?

  5. Peter G. Miller Says:

    Dee Dee –

    It’s an $8,000 tax credit, not $8,500.

    Please take a look at the IRS page for the tax credit to get information about how to make a claim.

  6. J. L. Says:

    Does anyone know if these limits will change any time soon with Obama’s stimulus package?

  7. Omar Kenney Says:

    J.L. - Nobody knows. I’d guess that there will not be any loan amount increases for FHA Loans.

    Dee Dee - This is a Tax credit. You must purchase the home before you get the credit. You can however amend your 2008 taxes and the IRS will send you your credit this year(2009) but only after you’ve purchased the property.

    Karen - Generally 620 in the minimum credit score needed to obtain FHA financing.

    Mary White - FHA financing is available up to 97.5% on a refinance for qualifying borrowers.

  8. Kim Says:

    Am I able to request that the seller pay the closing costs?

  9. M lee Says:

    What living reserves are required of the borrower
    1month of living expenses or more?

  10. Peter G. Miller Says:

    Kim –

    Yes. What you are looking for is called a “seller contribution.” Under FHA rules you can get a seller contribution equal to as much as 6 percent of the purchase price. Note that you still need money for the down payment.

  11. Peter G. Miller Says:

    Mr. Lee –

    If you buy a property with one or two units then there is no reserve requirement. If you buy with three or four units then you must have reserves equal to three monthly payments.

  12. Ian L. Says:

    FHA loan limit in my area is $292,500. I have $20,000 to put down. Plus i heard that I could apply the $8,000 stimulus for first time home buyers in advance to the purchase of the house. Does this mean I can buy a house that costs $320,500? Thanks.

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