CitiMortgage, along with other major lenders published their FHA loan limit increases. The higher temporary FHA loan limits were authorized as part of the Economic Stimulus Act of 2008. CitiMortgage will begin accepting FHA loan registrations as of March 17, 2009. The higher loan limits will remain in effect until December 31, 2009.
Economic Stimulus Package Update
Fannie Mae, Freddie Mac and FHA have released requirements resulting from the Economic Stimulus Act of
2008, which include loan limit availability by Metropolitan Statistical Area (MSA), Area Median Income (AMI) and
eligible products. CitiMortgage is diligently working to implement changes as quickly as possible.
FHA Loans:
As a result of the recently released HUD Mortgagee Letter 2008-06, we are pleased to announce we will begin accepting FHA loan registrations at the new temporary loan limits as of Monday, March 17.
New Maximum Conforming Loan Limit: Lesser of 125% of the area median home price or $729,750; the FHA
maximum loan amount shall not be less than $271,050 (for 1st lien single family residence). Revisions to local limits are listed below by unit:
Revisions to lowest local limits by unit:
1-Unit: $271,050 3-Unit: $419,400
2-Unit: $347,000 4-Unit: $521,250
“High Cost” local limits by unit:
1-Unit: $729,750 3-Unit: $1,129,250
2-Unit: $934,200 4-Unit: $1,403,400
The higher FHA loan limits had been announced by HUD on February 24, 2009, in Mortgagee Letter 2009-07.
Revisions to Current Limits:
Under ARRA, the revised FHA loan limits for 2009 will be set at the higher of the loan
limits established for 2008 under the Economic Stimulus Act of 2008 (ESA) or those established for
2009 under the Housing and Economic Recovery Act of 2008 (HERA).
Loan Limits and Pricing
To determine the higher loan limits for your county, it is best to check directly with your lender. Exact pricing and adjustments for the higher loan balance FHA loans is still being resolved. It is expected that investors will demand .5% higher pricing on these high balance loans.