Blog of the Mortgage

November 14th, 2008 8:39 AM
1 Week Later we have FHA Limits! Great News:
Especially if you are in: Sacramento, Sonoma, Napa, Salinas, Contra Costa, Alameda et. al.

Well, we've all been waiting anxiously for this announcement and thankfully it has been given to us nice and early before the Holidays.

HUD has announced the new FHA Loan Limits today 2009. This is a mixed bag for many who enjoyed a brief "dance" with higher commission earning FHA Jumbo loans. What sucked about FHA Jumbo was the low yield (rebate) that was offered in the secondary markets and on your ratesheets. 
 Do we need HIGHER loans amounts across the state? That's debatable as house prices and incomes ultimately have to meet each other at a crossing of paths in order for sustained sales numbers to continue forward. Will FHA still help us sell more homes to the first time home buyers that we need to enter the market place in '09-'10 to carry our business in at least a modest forward motion? You bet! Especially as the MI companies and FNMA/FHLMC continue to contract and tighten their guidelines.
I have to admit, I took the FHFA Announcement out of context last Friday (perhaps in my over zealous reading and typing?). 
Some of the parts still hold true:
What will be different this upcoming year as opposed to 2008 will be the fact that IF your loan is one of these High Cost areas it will qualify for a regular FHA Price.
No More looking for the adjustment or different page of ratesheets.

So... Get the Advertising Ready. Spread the word to your Realtors in these Counties and then download the Press Release (08-36ML) from HUD and the FHA High Limits & FHA Low Limits from my Site below on Education Station.

Examples of Counties that are going to Benefit from FHA Higher than floor ($271,050) limits: 
Napa County - $592,250
Sonoma - $520,950
Stanislaus - $276,000
Sacramento (Incl El Dorado/Placer/Sac/Yolo) - $474,950
Solano - $400,200
Salinas (Monterey) - $483,000
Mendocino - $373,750/ Humboldt - $327,750
S.F./Oak/Fremont (Incl. Contra Costa/Alameda/Marin/SF/San Mateo) - $625,500
Santa Clara (Incl. San Benito/Santa Clara) - $625,500

We ALL KNOW that first time homebuyers are going to be the driving force behind our production for the next 24 months as values continue to FALL in many more areas. We WILL BE ABLE to fund FHA Streamlines as refinances but unless the borrower is Rate & Term 10% Equity Refinances will continue to move out of reach for us in Northern California.
Posted by Raoul Badde on November 14th, 2008 8:39 AMPost a Comment (0)
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