#fha loan limits
Everybody keeps asking about the new Loan Limits with the Economic Stimulus Act of 2008. and by how much? President George W. Bush signed the final version of the Stimulus Act on Feb 13, and yes, FHA maximum loan limits are increased!
But, can I really refinance my loan up to $729,750? Not so fast. There is a lot of confusion out there so let’s get the facts.
Highlights of the single-family provision of the Act:
1. 125% of the area median price; or
HUD has 30 days after enactment to define the area median prices in the country and publish the new loan limits.
Well, here is what you need to know. This means that all FHA limits will be increased by something. The areas with low median prices will go to $271,050. The areas with high area median prices can go as high as $729,750.
Which area are you?
FHA Loan Limits Page is your first stop to figure out what your limits are currently. This page will show you how to get you current FHA loan limits for the area that you live. Then you can use this simple calculation to figure out what the proposed numbers will be 30 days from now when HUD updates the list and makes it final for setting the loan limits.
For now we can just use a simple math to figure it out based on the current loan limits. Current maximum loan amounts that lie between the FHA floor and the FHA ceiling are based on 95% of the area median price. To figure out what 125% of median is: (a) divide the current maximum loan amount by 95% to arrive at the median; then (b) multiply times 125% to arrive at the new figure.
Example: Seattle King County Single Family Limit $362,790
$362,790 divided by 95% = $381,884
$381,884 x 125% = $477,355 New Max Loan Amount.
Code One-Family Two-Family Three-Family Four-Family Last Revised
SEATTLE-BELLEVUE-EVERETT, WA METROPOLITAN DIVISION 42660 KING 033 $362,790 $436,000 $529,750 $611,250 10/22/2007
If you live in Spokane the single family limit is $202,350. That would make the new loan limit $266,250. But with the act the new floor will bring you up to a new max loan amount of $271,050. This will really help in other parts of the country.
Either way it still is not $729,750. The current Fannie Mae loan limit is still maxed at $417,000 for conventional mortgages. This new bill puts the new FHA loan limits at $477,355 for the Seattle Metro Area.
First Mortgages delivered to Fannie Mae
These amounts will apply to all conventional mortgages that are delivered to Fannie Mae on or after January 1, 2008. Please note that the 2008 conforming loan limits are identical to the 2007 and 2006 conforming loan limits.
Number of Units
Principal Balance Alaska, Guam, Hawaii,
and U.S. Virgin Islands Only