new FHA lending limits

[aimster]

I just looked up the posted FHA lending limits for our area (which I heard were going to be changed as of today)...and ours went from $200,160 to $271,050...wa-hoo! It's a start, although it won't benefit us much due to the value of our home.

Here's the link: https://entp.hud.gov/idapp/html/hicostlook.cfm

What I want to know is...did they also change the down payment/equity requirement of 3% to 1.5% like they had talked about too? I can't find that info anywhere...thanks!

Every little bit helps!

[imadreamer]

oh - fha may also suggest a short pay-off, and you might be able to get your 1st to carry back a 2nd if the value isn't there.

OK there are no short pay offs going on...they are not happening....the seconds are not supported by valuation....there are no short refinances going on....I am a DE underwriter and they are not going on....The concept is proposed, but not followed through even by FHA that has it in their policies.

The 1.50% Equity Position is not in place and may not go there for quite some time, it requires publication in the Federal Register and the new equity rule also has tiering of MIP due to purpose, FICO and LTV.

At this time the loan amounts for FHA new loan limits may or may not be published today, if they are they still may not include the new high cost area designations for the greater loan amounts of the recent legislation that was passed.

Just checked they have identified the high cost areas, ahead of time, a government first...no 1.50% Equity and that will be a while, maybe not at all, big arguments going on.

[aimster]

Thanks, Poppy. I was curious, but like everything else, "they" are dragging their feet. Worth a shot though...

No it is not a foot drag, it is far more complex than that and may require congressional approval due to the way FHA is mandated, there is a huge argument about it in the government hallways. FHA tried to do something on their own and there are some PO'd folks in the respective government areas at this point.

The implications to the tax payer and the government with the exposure of 1.50% equity and declining values and the concept that FHA is the new Sub-Prime (which it is not) are huge and very troubling and very costly if there is a misstep and that cost is born by the American Tax payer, you and me.

[colahhh08]

So it looks like Los Angeles county has gone to $729,750 for One-family!! Wow! If I am reading it properly.
One-Family Two-Family Three-Family Four-Family
$729,750 $934,200 $1,129,250 $1,403,400

Yes you are correct, however the issues are going to be the valuation problem that we are all battling.....onward soldiers....