FHA is lowering existing loan limits for single family housing in Charlotte MSA from $303,750 to $271,050. This change is set to go into effect on October 1st, 2011. Although I am not happy about the change I seriously doubt it will have any real impact on the local housing market and here’s why…
#1. FHA has already lost its appeal to many buyers because of FHA increasing the annual mortgage insurance premiums
#2. Convetional mortgages still go to $417,000 and offer better monthly payments than FHA
#3. The median sale price in our market is only $186,000 anyway!
$4. FHA Streamline Refinances are exempt… but cannot exceed thier original loan amount.
If you are wanting the use the program to purchase a home and your loan amount exceeds the new limits, you need to act fast. You need to have your loan approval prior to Oct. 1st. The time to process and approve a FHA mortgage can very with different lenders, so you need to ask your lender right away if this will effect you! I will be accepting applications for purchases beat the dealine up until Sept. 9th, but I will be requiring a VERY complete file.
If you would like to read more about this or check over the requirements in detail you can see the HUD Mortgagee letter by clicking here.
I hope this information helps! Please don’t forget to subscribe to my blog for more updates about FHA loan programs.