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FHA Limits To Increase
As a result of the increase in the conforming loan limit
announced by Freddie Mac and Fannie Mae, the FHA floor limit
will automatically increase for those loans insured on or after
January 1, 2005. The new FHA limit will be $172,632 which is 48
percent of the new conforming limit (i.e. $359,650).
The high cost limit will be increased to as high as $312,895
which 87 percent of the new conforming loan limit. However,
since there is no nationwide limit, HUD will have to compute the
individual limits for all 3200 US counties. HUD will be
publishing a new mortgagee letter announcing the areas that will
be affected most likely in the last two weeks in December.
Please contact Peter Morgan at 202-383-1233 if you
have any questions.
New Fannie Mae/Freddie Mac Conforming Loan Limit Set
On November 30, 2004, Fannie Mae and Freddie Mac increased
conforming loan limits on single family properties from $333,700
to $359,650, effective January 1, 2005. This loan limit increase
reflects the October-to-October changes in average house prices,
as published by the Federal Housing Finance Board, and complies
with the Supervisory Guidance issued by the Office of Federal
Housing Enterprise Oversight (OFHEO). Loan limits will also
increase on other properties as follows:
- Two-family properties: $460,400 (up from $427,150);
- Three-family properties: $556,500 (up from $516,300); and
- Four-family properties: $691,600 (up from $641,650).
Under the Fannie Mae and Freddie Mac charters loan limits in
states and territories designated high-cost areas – Alaska,
Hawaii, Guam and the U.S. Virgin Islands – are 50 percent higher
than the amounts above.
Please contact George Griffin 202-383-1102 if you have
any questions.
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