Comments on: New FHA Mortgage Limits

By: Rhonda Porter

Rhonda Porter — Thu, 06 Mar 2008 23:02:40 +0000

Santa Barbara, people may be assuming too. I’m afraid there’s going to be a significant adjustment to conforming loans over $417k. We won’t know until the lenders come out with pricing.

By: Santa Barbara Real Estate Voice

Santa Barbara Real Estate Voice — Thu, 06 Mar 2008 22:41:06 +0000

Thanks for the news…after much ranting and raving here in the Santa Barbara CA area, we became one of 14 new areas to receive the maximum amount of $729,500. Still undecided in what this means and will mean to the market. I think a lot of people have been wrongly lead that all rates simply will drop if you are under this conforming limit.

By: Rhonda Porter

Rhonda Porter — Thu, 06 Mar 2008 20:23:29 +0000

Roger, I just did a post on the conforming limits…what I’m not sure of is if conforming was only increased in certain counties or if they just referenced certain counties.

Time will tell. Time will also tell us what the price hits (brackets) will be on loans over $417,000.

By: Rhonda Porter

Rhonda Porter — Thu, 06 Mar 2008 20:22:15 +0000

Jillayne, good point about FHA — not every lender is FHA approved. Consumers should ask their lender if they are FHA approved…if they’re trying to steer away (as many did to subprime) they probably are not.

However…the consumers with FHA mortgages are paying for their mortgage insurance (upfront and monthly). I don’t see it as a “bail out”.

I’m sure appraisals will continue to be scrutinized. They’ve been amazing on recent transactions (not just FHA).

By: Roger Ingalls

Roger Ingalls — Thu, 06 Mar 2008 19:55:40 +0000

A quick reminder, we have not seen pricing for this new higher limit, and it is quite possible it will not be the same as pricing for loans below $417K.

By: Roger Ingalls

Roger Ingalls — Thu, 06 Mar 2008 18:46:33 +0000

I read the post to state that conforming limits are raised as well (not just FHA).

Is that the case Rhonda?

And yes, EVERY borrower should ask their lender if FHA would improve their situtation, and if their lender is authorized to do offer it.

By: Jillayne Schlicke

Jillayne Schlicke — Thu, 06 Mar 2008 18:35:22 +0000

Rhonda and all readers,

We need make sure the general public knows that not every lender is an FHA-approved lender.

I recommended to the Realtors in my class yesterday that consumers interview with three different types of mortgage lenders before making a decision: A broker, a bank, and a credit union. Not all will be approved to offer FHA loans, and none of these folks have a duty to point the consumer toward an FHA loan if their company does not offer FHA loans.

So nice to know that our federal government is insuring loans up to 97% LTV in declining markets all across the United States.

Let’s ALSO remember that FHA requires full underwriting, full documentation of income, assets, and funds to close. Thank goodness.

By: Roger Ingalls

Roger Ingalls — Thu, 06 Mar 2008 18:32:07 +0000

Rhonda:

Again, you are the best!

I had heard a snippet, and wanted the rest of the story.

Found it here first! Thanks!

By: Rhonda Porter

Rhonda Porter — Thu, 06 Mar 2008 18:06:29 +0000

ARDELL, here is an example for you to chew on… someone can purchase a duplex w/FHA financing, live in one unit and rent out the other with a loan amount up to $726,500, minimum down…low mortgage insurance. Once we have confirmation on the conforming loan limits, I’ll do a comparison post.

By: Rhonda Porter

Rhonda Porter — Thu, 06 Mar 2008 18:02:36 +0000

All counties went up in WA State thru the end of this year. As soon as I know anything else…I’ll be over it.