FHA Jumbo
Effective March 6, 2008, HUD will offer temporary FHA Jumbo loan limits that will range from $271,050 to $729,750. The maximum FHA loan amount of $729,750 will only be applicable to extremely high cost metropolitan areas. The previous high loan limits for FHA were originally at $362,790.
The Economic Stimulus Act of 2008 permits FHA to insure home loans of amounts up to 125% of the AMHP area median house price, with the amount being between $271,050 and $729,750. The new FHA minimum & maximum loan limits are based on 65% and 175% of the conforming mortgage limits for Government Sponsored Enterprises in 2008, which is $417,000. FHA used a combination of existing government data sets & available commercial info to evaluate the median sales price for each area. The change in FHA loan limits are applicable to all FHA insured home loans, and it lasts until December 31, 2008.
From 09/07 to 12/07, FHA has facilitated more than $38 billion of much needed mortgage activity in the housing market, more than $15 billion of which was through the FHA Secure program (FHA’s refinancing product). In January 1st, 2009, FHA’s maximum loan limit will return to $362,790, unless the US Congress approves legislation to permanently increase the loan limits as part of the FHA Modernization bill. Current FHA Jumbo Rates are slightly higher than your regular FHA rates.