Higher permanent loan limits for conventional conforming and FHA will become effective Jan. 1, 2009; the Act calls for limits to increase to a maximum amount of $625,500, depending on the metropolitan area. Note: The temporary limits established in March will expire on Dec. 31, 2008.
§ FHA floor limits will remain the same at $271,050.
§ The VA guaranty will increase.
§ Minimum cash investment for FHA loans will increase to 3.5%.
§ A moratorium on risk-based pricing for FHA loans will go into effect Oct. 1, 2008.
§ Seller-funded Down Payment Assistance Programs with FHA loans will be terminated Oct. 1, 2008.
§ Condo processing for FHA loans will be streamlined.
§ FHA reverse mortgages (HECM): changes, among others, include higher loan limits, availability with purchase transactions, and a modification to the origination fee.
Thursday, July 31, 2008
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