The temporary FHA Loan Limits were reduced on October 1, 2011 as Congress elected to not renew them. The county by county loan limits were reduced to original loan limits which were upwards of $100,000 or more less per county.
Congress has reevaluated their decision and have agreed to reinstate the previous loan limits beginning January 1 through October 1, 2012 for home buyers and refinance borrowers. This means for purchase and refinance activity and even FHA streamline refinances, the previous loan limits that were in place prior to October 1 will be reinstated beginning in January.
The FHA High Loan Limits take effect January 1, 2012!
What to do if you’re presently involved in a purchase contract:
- If you can, move the closing until the middle or end of January.
- Talk to your real estate agent
- Make sure you can qualify for the mortgage with a higher loan limits
What to do if you’re presently involved in a refinance situation:
- Put the transaction on pause, till January
- Make sure you have a conversation with your mortgage lender that you will be eligible for the program
- If needed, finish getting the appraisal ordered (appraisals are typically good for a period of three months)
Get a mortgage rate quote today on an FHA Loan with a higher loan limits. While it is true the program will be eligible for borrowers beginning in January there is no harm in getting a rate quote now to begin your mortgage shopping for the best possible terms and fees. The higher FHA Loan limits are back!
RELATED MORTGAGE ADVICE FROM SCOTT SHELDON
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