FHA Loan Limits Reduced Effective September 30th

FHA Loan Limits Reduced Effective September 30th

Jason Griesser, mortgage broker extraordinaire, recently put a very important post up on his blog.

Borrowers seeking to take advantage of historically low mortgage rates AND the FHA minimum down payment of 3.5%  will soon see the maximum loan amount then can get lowered.  The bottom line is that buyers currently looking will want to act quickly.

Here’s a little of Jason’s post:

Changes throughout the mortgage industry led to these increases in FHA-insured loans being chosen, but mainly the flexibility you are afforded as a first-time home buyer is unrivaled in almost any other loan program. During this growth and support from FHA through the real estate correction experienced in the last few years they allowed for loan amounts to go up to the Fannie Mae limits of $417,000 and in some cases even higher in certain ‘high cost’ areas of the country. This temporary increase in loan limits is ending THIS month! Below is a breakdown of the maximum loan limits for our surrounding counties here in Philadelphia. It is VERY important to make note of these amounts as they are quite a bit lower than they almost 10% less across the board in our area.

Effective 9/30/2011, FHA maximum loan amounts in Philadelphia County will be reduced as follows:

Single Family – $ 379,500.00 (down from 417,000!)

Two Unit – $485,800.00

Three Unit – $587,250.00

Four Unit – $729,800.00

In order for the existing higher FHA loan amounts to be secured through the deadline of 9/30/2011 as stated by FHA the loan needs to have a fully reviewed/approved appraisal and a ‘credit approval’ meaning that the FHA underwriter will have had to sign off on the appraisal and all financial documentation and disclosure provided by the homeowners.

To search Philadelphia Real Estate listings for condos, homes and apartments click here.

Blog post compliments of CenterCityTeam’s Philadelphia Real Estate Blog

Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106
215.521.1623  Direct
610.636.4364  Cellular
888.308.1148  Fax
[email protected]
www.CenterCityTeam.com