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FHA Loan Limits in Florida

Young & Associates Mortgage has working with all the major banking institutions to help many people with there mortgage refinance in Florida. Most of the major banks pressed by the government have started working with borrowers to modify there current loans or help them with refinancing. As far the government goes they have really stepped up the efforts with the FHA mortgage products to help people that have fallen on hard times refinance there current mortgage they have even raised the current loan limits to help borrowers that have properties with higher values.

Below is one of our lenders recent newsletter… Article Headline - FHA Loan Limits Are Increased By County

CLICK HERE TO SEARCH LOAN LIMITS BY COUNTY - Up to $729,750

March 6, 2008 TO: ALL APPROVED MORTGAGEES SUBJECT: Temporary Loan Limit Increase for FHA This Mortgagee Letter provides information on Federal Housing Administration single family mortgage limits as a result of enactment of the Economic Stimulus Act of 2008 (”the Act”). These limits are effective for mortgages endorsed for insurance on or after the date of this mortgagee letter and remain in effect for those mortgages for which the mortgagee has issued credit approval for the borrower on or before December 31, 2008. FHA Single Family Programs Affected: The mortgage limits described in this Mortgagee Letter are effective for those mortgages insured under the following Sections of the National Housing Act: Sections 203(b)(FHA’s basic 1-4 family mortgage insurance program), 203(h)(mortgages for disaster victims), 203(k)(rehabilitation mortgage insurance), and 234(c)(condominium units). These limits do not apply to Section 255, Home Equity Conversion Mortgages (HECM). Revisions to the Lowest Local Limits: The Act provides that the mortgage limit for any given area shall be set at 125% of the median house price in that area, as determined by the Department of Housing and Urban Development, except that the FHA mortgage limit in any given area cannot exceed 175% of the 2008 Freddie Mac conforming loan limit of $417,000, nor be lower than 65% of the same 2008 Freddie Mac conforming loan limit for a residence of applicable size. Thus, in areas where 125% of the median house price is less than 65% of the Freddie Mac limit, the FHA limits are set at the 65% limit, i.e., the “floor,” as follows: One-Unit $271,050Two-Unit $347,000Three-Unit $419,400Four-Unit $521,250 “High-Cost” Local Limits: Any area where the limits exceed the floor is known as a “high cost” area. In areas where 125% of the median house price exceeds the 175% limit of $729,750 for a 1-unit property, the mortgage limits are set at the 175% amount, i.e., the “ceiling,” as follows: One-Unit $729,750 Two-Unit $934,200 Three-Unit $1,129,250 Four-Unit $1,403,400

For all other areas, i.e., those where 125% of the median home price for the area is in between the floor and the ceiling, the limit shall be at 125% of the median home price.