Robyn Yates Professional Real Estate Entrepreneur

Unless there is Congressional action FHA LOAN LIMITS will revert back to the loan limits determined under the Housing and Economic Recovery Act (HERA) for loans insured by FHA on or after Ocrober 1, 2011. As a result FHA loan limits would likely decline in 669 of the 3,334 counties or county equivalents that are eligible for FHA insurance nationally.

Since 2009, the maximum FHA loan limit for Clak County has been $400,000. If there are not actions taken by Congress, on October 1st the new maximum loan limit will DECLINE to $287,500. To remain at a 3.5 perent down payment, the maximum sales pice would have to be $298,000. Any higher sales price and the down payment will rise dollar for dollar to keep the maximum loan at $287,500.

This may seem like a small issue because Las Vegas area prices ae so low. However, it is very challenging to get HUD to raise the FHA limits. FHA loans are a huge part of our of our market.

Anyone who would like an FHA loan should act quickly in the event this decreas in loan limits takes affect.

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Comments Posted on "FHA Loan Limits dropping effective October 1, 2011"

1. Gmac Home Loans
Posted November 8, 2011 3:30 PM

Ever since the conventional mortgage market ran into financial trouble, FHA mortgage loans have been increasing as a more viable source of home financing because of the easier mortgage qualifying guidelines and relatively lower costs.

2. Joe Bellows
Posted July 25, 2011 11:47 AM

This is very interesting. will this be nationwide or just in Nevada? I am a mortgage broker serving Oregon and Washington and this could have a huge impact? please let me know if there are any updates on this. Thanks

Joe Bellows Security Mortgage Lending Portland Oregon

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