The Temporary Loan Limits* are scheduled to expire on Friday, Sept. 30, 2011, for the following programs:

  • High Balance Conforming Loan Program
  • Super Conforming Mortgage Program
  • High Balance FHA Loan Program
  • High Balance VA Loan Program
  • Fannie Mae HomePath® Program

New San Diego county loan limits that will be effective Oct.1, 2011, Changes on the High Balance Conforming Loan Program. 

High Balance Conforming –Limits Expiring 9/31/2011
1-Unit 2-Unit 3-Unit 4-Unit
$697,500.00 $892,950.00 $1,079,350.00 $1,341,350.00
High Balance Conforming –Expected Limits Effective 10/1/2011
1-Unit 2-Unit 3-Unit 4-Unit
$546,250.00 $699,300.00 $845,300.00 $1,050,500.00

How will the temporary loan limits be replaced?
Effective Oct. 1, 2011, the calculation for the permanent loan limits (as announced via the Housing and Economic Recovery Act in late 2008) will be implemented. Therefore, the overall high-cost limit will revert to $625,500 and the limits in certain counties will be reduced from 125% to 115% of the median home price in the area. The national conforming loan limit for single family residences in contiguous United States is currently $417,000.
Note: For FHA loans, the FHA floor is expected to remain at $271,050. The FHA ceiling is expected to revert to $625,500. Similar to conventional, the county limits will be reduced from 125% to 115% of the median home price in the area.
What will the new limits be on Oct. 1, 2011?
HUD or the Federal Housing Finance Agency (FHFA) has not indicated what timeframe will be considered to determine the median area house price. Because of the continued changes in the housing market, the median area house price may be different throughout the year. This timeframe will be key to determining the actual permanent loan limits.
How will the High Balance VA Loan Program be impacted?
We expect the loan guaranty to also be reviewed when the temporary loan limits expire. Because of the possibility that the loan guaranty may change, it is recommended that VA loans use $104,250 guaranty until further notice – specifically for the extended locks noted below. Reminder: Adjustments may be required if veteran will have guaranty that will not be re-stored.
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