New posts about Creekside Realty & Appraisal

Appraisal Articles

2009 FHA Limit Set

November 11th, 2008 12:44 PM

2009 FHA Limit Set

November 10, 2008

By MORTGAGE DAILY.COM Staff

Emergency economic legislation temporarily increased the limit on loans insured by the Federal Housing Administration. But that increase is set to expire this year. However, other legislation made permanent increases to maximum FHA loans.

H.R. 5140, the Economic Stimulus Act of 2008, was signed by President Bush on Feb. 13. Among other provisions, it temporarily raised -- until Dec. 31, 2008 -- the FHA limit in high-cost areas to $729,750. Prior to the legislation, the FHA limit was $362,790.

H.R. 3221, the Housing and the Economic Recovery Act of 2008, was signed by Bush on July 30. Among its provisions are a permanent increase to FHA-insured loan amounts -- which the U.S. Department of Housing and Urban Development said today would be $625,500 in high-cost areas. In low-cost areas, the limit is $271,050.

Loan limits for specific areas are set at 115 percent of the median house price.

In high-cost areas, the FHA limit on a duplex is $800,775, while loans on triplexes can go as high as $967,950 and four-unit properties can be financed for up to $1,202,925, according to Mortgagee Letter 2008-36 distributed Friday. In low-cost areas, the maximum FHA loan on a four-unit property is $521,250.

In for Alaska, Guam, Hawaii and the Virgin Islands, the FHA limit is set at $938,250 for a single-family residence.

Last month, the Federal Housing Finance Agency confirmed the 2009 conforming loan limit in high-cost areas at $625,500.

This month, HUD issued Mortgagee Letter 2008-35 indicating that a national limit had been established on reverse mortgages at $417,000.

Posted by Amanda Rivera on November 11th, 2008 12:44 PMPost a Comment (0)

Subscribe to this blog

Land of the free, home of the financially responsible!

November 12th, 2008 5:51 PM

Land of the free, home of…

The brave? How about, home of the financially responsible…

Not home of the free handout.

Can You Believe It?

I am all for life, liberty, and the pursuit of happiness. You have the right to pursue life. But there are no guarantees; and rest assured not one of us will get out of this life alive. You have the right to pursue liberty; but again, there are no guarantees that you will obtain it. And of course, you have the right to pursue happiness, but it is the most elusive of all.

Then there are those with the misguided assumption that not only are these things supposed to be obtainable, but if they are not also easily obtainable, then they should be given.

Given? How about earned.

What amazes me most is our country bailing out individuals who did not have the wherewithal to manage their funds better. What incentive do they have to perform better next time?

Personally, I do not think that owning a home is for everyone. If you can not manage your daily finances, perhaps you should be renting instead. And certainly these individuals should not have their errors rewarded with a payoff or forgiving the debt.

I would like for the free money ride to be over. In fact I think we should go back to the days of 30 to 50 % equity stakes. At the very least, 20% equity.

I believe that if you want to own a home, you should have a little skin in the game. You should have to save your money and amass a down payment. The process of saving is a lost art. And having 20% tied up in equity would get rid of the bail and burn attitude of the 100% financing.

When homeowners have nothing that they have paid in, they can just walk away: a bankruptcy or foreclosure is not enough of a deterrent any more. Let’s make it mean something to OWN a home.

Comments? Email me.

Posted by Amanda Rivera on November 12th, 2008 5:51 PMPost a Comment (0)

Subscribe to this blog