New Temporary FHA Conforming Loan Limits Announced!

| | Comments (0)

Got an email alerting me to this fact. The e-mail was gobbledegook as far as making any sense but I went to the FHA home page and they had better information.

It appears as if the FHA, through OFHEO, has opted to maximally raise their limits, to 125% of the median sales price in their Metropolitan Statistical Area (MSA). For a very few MSAs, the limit is the legal maximum of $729,750.

For the first time, conforming loan limits are not going to be one number for the 48 contiguous states. This is a very welcome and long overdue development, even if it does make life more complicated. Go to the FHA Mortgage Limits page to find out how much the limits are going to be in your area.

I wrote an article about waiting for the limits and how Fannie and Freddie, and the FHA separately, are going to have to decide what they're actually going to fund. FHA's limits have now been announced, but we're still waiting for Fannie Mae and Freddie Mac are going to react. Keep in mind that they are 98% privately held corporations. They want to stay on Congress' good side because they do have some moral or historical claims on the taxpayer if they get in trouble doing what Congress wants them to do, but the final decision as to what they will fund belongs to them. Now that the FHA has made their announcement, I would look for Fannie and Freddie to be making their decisions as to what they will and will not fund fairly quickly, and that will set the limits as to what a conventional conforming loan is.

Caveat Emptor

UPDATE: I just went the the Credit Union, and not only they but the bank next door are doing something we used to call "Betting on the come" when I was a controller. They're advertising "Jumbo loans for Conforming Rates!" This is fundamentally dishonest. What they're doing is taking applications based upon what they think Fannie and Freddie will do. However, if they guess wrong, they're not going to actually fund the loan, especially given the two percent divergence between conforming and jumbo rates for A paper at the same price. Bottom line: They're trolling for clients with incredibly misleading advertising, and if Fannie and Freddie don't come through according to what these institutions expect, there's going to be a large number of very angry people.


Delicious Bookmark this on Delicious StumbleUpon Toolbar Stumble It!
Please be civil. Avoid profanity - I will delete the vast majority of it, usually by deleting the entire comment. To avoid comment spam, a comments account is required. They are freely available, and you can post comments immediately. Alternatively, you may use your Type Key registration, or sign up for one (They work at most Movable Type sites). All comments made are licensed to the site, but the fact that a comment has been allowed to remain should not be taken as an endorsement from me or the site. There is no point in attempting to foster discussion if only my own viewpoint is to be permitted. If you believe you see something damaging to you or some third party, I will most likely delete it upon request.
Logical failures (straw man, ad hominem, red herring, etcetera) will be pointed out - and I hope you'll point out any such errors I make as well. If there's something you don't understand, ask.
Nonetheless, the idea of comments should be constructive. Aim them at the issue, not the individual. Consider it a challenge to make your criticism constructive. Try to be respectful. Those who make a habit of trollish behavior will be banned.

Leave a comment


Buy My Science Fiction Novels!
Dan Melson Amazon Author Page
Dan Melson Author Page Books2Read

Links to free samples here

The Man From Empire
Man From Empire Cover
Man From Empire Books2Read link

A Guardian From Earth
Guardian From Earth Cover
Guardian From Earth Books2Read link

Empire and Earth
Empire and Earth Cover
Empire and Earth Books2Read link

Working The Trenches
Working The Trenches Cover
Working the Trenches Books2Read link

Rediscovery 4 novel set
Rediscovery set cover
Rediscovery 4 novel set Books2Read link

Preparing The Ground
Preparing The Ground Cover
Preparing the Ground Books2Read link

Building the People
Building the People Cover
Building the People Books2Read link

Setting The Board

Setting The Board Cover
Setting The Board Books2Read link

Moving The Pieces

Moving The Pieces Cover
Moving The Pieces Books2Read link

The Invention of Motherhood
Invention of Motherhood Cover
Invention of Motherhood Books2Read link

The Price of Power
Price of Power Cover
Price of Power Books2Read link

The End Of Childhood
End Of Childhood cover
The End of Childhood Books2Read link

The Fountains of Aescalon
Fountains of Aescalon Cover
The Fountains of Aescalon Books2Read link

The Monad Trap
Monad Trap Cover
The Monad Trap Books2Read link

The Gates To Faerie
Gates To Faerie cover
The Gates To Faerie Books2Read link

Gifts Of The Mother
Gifts Of The Mother cover
Gifts Of The Mother Books2Read link

The Book on Mortgages Everyone Should Have!
What Consumers Need To Know About Mortgages
What Consumers Need To Know About Mortgages Cover
What Consumers Need to Know About Mortgages Books2Read

The Book on Buying Real Estate Everyone Should Have
What Consumers Need To Know About Buying Real Estate
What Consumers Need To Know About Buying Real Estate Cover
What Consumers Need to Know About Buying Real Estate Books2Read

Dan Melson's San Diego Real Estate and Mortgage Website

↑ Grab this Headline Animator

About this Entry

This page contains a single entry by Dan Melson published on March 6, 2008 12:35 PM.

Real Estate and the Four Levels of Competence was the previous entry in this blog.

Why All The Fuss Over Real Estate Transactions? is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

Powered by Movable Type 4.21-en

Enter your email address:

Delivered by FeedBurner

Copyright 2005-2023 Dan Melson. All Rights Reserved