The brief read is that there may be a short window here to get higher FHA loan amounts in. The Current loan limit was 271,050.00 the president signed a bill raising the FHA loan limits “supposedly” back to what they had been “$292,500.00 but it is only good currently through the end of the year. If you have a contract or want to go to contract in this price range and there has not been a case number pulled yet make sure your lender gets one pulled before the end of the year.
We are expecting the official letter from HUD sometime this week but I wanted to get this out for a heads up.
On November 18, 2011, the President signed into law H.R. 2112, Consolidated and Further Continuing Appropriations Act 2012 (HR2112). Section 238 of HR 2112 re-establishes the FHA loan limit at the higher of the dollar limit in Section 203(b)(2) or the dollar limit prescribed in Section 202 of the Economic Stimulus Act of 2008 for Forward mortgages.
Therefore, effective for all Forward mortgages with a case number assigned on, or after, November 18, 2011 through December 31, 2011, the loan limits referenced in Mortgagee letter 10-40 shall be in effect.
As a reminder, Mortgagee Letter 11-29 still applies to the time period 10/1/11 through 11/17/11:
• Loans that did not have credit approval on, or before, 9/30/11 are subject to the lower limits that were in effect 10/1/11 through 11/17/11.
• Loans that had credit approval on or before 9/30/11 and FHA to FHA refinances may be eligible for exceptions to those loan limits as defined in Mortgagee Letter 11-29.
The Department will be issuing a Mortgagee Letter by mid-next week that will include more detailed guidance and applicable updated loan limit tables for 2012. We expect supporting system changes to be completed within that same time frame.
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Branch Manager/Open Mortgage
14502 N Dale Mabry Hwy #312A
Tampa, Fl 33618
NMLS # 213058
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