Higher FHA Loan Limits retro to November 18, 2011

This morning HUD (finally) updated their website with the restored high balance loan limits.  In King, Pierce and Snohomish Counties, the FHA loan limit for a single family dwelling is $567,500 effective for FHA case numbers obtained November 18, 2011 or later through 2012.

For a list of all FHA loan limits for homes in Washington state, click here.

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About Rhonda Porter

Rhonda Porter is an NMLS Licensed Mortgage Originator MLO121324 for homes located in Washington state. Her blog, The Mortgage Porter, is nationally recognized for sharing relevant information to consumers about mortgages. She has been originating mortgages since 2000 at Mortgage Master Service Corporation #40445 Consumer NMLS Website: http://www.nmlsconsumeraccess.org/TuringTestPage.aspx?ReturnUrl=/EntityDetails.aspx/COMPANY/40445 NMLS ID 40445. Equal Housing Opportunity. You can follow Rhonda on @mortgageporter, Facebook and/or Google+

10 thoughts on “Higher FHA Loan Limits retro to November 18, 2011

  1. Thanks for the update, Rhonda!

    To clarify, limits have not changed for Conventional Loans. Limits have reverted back to the $567,500 for FHA only…and through 2012.

    Is that correct?

    Do you think people will do 20% FHA loans?

    • Conforming loan limits for 2012 in Seattle will remain (and currently are) at $506,000 🙂

      Yes, some folks may do 20% down FHA depending on their circumstances. FHA mortgage insurance is pretty steep though – regardless of LTV, FHA loans have mortgage insurance.

      We may also see more people resort to using second mortgages (piggy backs). Currently we will go up to 85% total loan to value with credit scores above 720. The guidelines for piggyback are similar to those of non-conforming/jumbo.

      • Thanks Rhonda! I didn’t realize that FHA had Mortgage Insurance with a 20% down or more loan. I’ve never seen someone do an FHA loan with 20% down, or have reason to, before.

        I still think these low rates being assumable will be a HUGE advantage at time of sale in the future. But I doubt many will opt for FHA for that reason alone…or even to max out the new loan limit.

        Can they piggy back a conventional or HELOC to a $567,500 FHA loan?

        • I’ve never been asked if a FHA loan could have a second mortgage or heloc piggy-backed. I believe they can w/a max LTV of 96.5% – the catch is, most second mortgage lien holders are only going up to 85% combined LTV.

  2. Thanks Rhonda!

    I have never thought that FHA loans have mortgage insurance. I should have chosen them the first place. To add Ardell’s statement, is there a possibility that they could push up to $567,500 by second quarter of 2012?

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