Loans By Kathy: Changes as of October 1, 2011

Changes as of October 1, 2011

October 1, 2011 will mark the start of more new changes in the mortgage industry.  In my opinion the two biggest changes are the new maximum loan amounts for FHA financing and the implementation of a monthly funding fee on the USDA loans.

Let's discuss each on individually.  The FHA maximum loan amounts are established based on the median

Here is the information that was posted on the HUD website.

The Oct 1, 2011 - Dec 31, 2011 basic standard mortgage limits for FHA insured loans are:
      One-family   Two-family   Three-family   Four-family  
  FHA Forward   $271,050.00   $347,000.00   $419,425.00   $521,250.00  
  HECM   $625,500.00      
  Fannie/Freddie   $417,000.00   $533,850.00   $645,300.00   $801,950.00  

High cost area limits are subject to a ceiling based on a percent of the Freddie Mac Loan limits
The ceilings for Oct 1, 2011 - Dec 31, 2011 are:
      One-family   Two-family   Three-family   Four-family  
  FHA Forward   $625,500.00   $800,775.00   $967,950.00   $1,202,925.00  
  HECM   $625,500.00      
  Fannie/Freddie   $625,500.00   $800,775.00   $967,950.00   $1,202,925.00  

Section 214 of the National Housing Act provides that mortgage limits for Alaska, Guam, Hawaii, and the Virgin Islands may be adjusted up to 150 percent of the new ceilings. This results in new Oct 1, 2011 - Dec 31, 2011 ceilings for these areas of:
      One-family   Two-family   Three-family   Four-family  
  FHA Forward   $938,250.00   $1,201,162.00   $1,451,925.00   $1,804,387.00  
  Fannie/Freddie   $938,250.00   $1,201,162.00   $1,451,925.00   $1,804,387.00  

 

Here are the maximum allowed loan amounts by county:

MSA Name MSA Code Division County Name County
Code
State One-Family Two-Family Three-Family Four-Family Median Sale Price Last Revised Limit Year
NON-METRO 99999   BACON 005 GA $271,050 $347,000 $419,425 $521,250 $32,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   DODGE 091 GA $271,050 $347,000 $419,425 $521,250 $53,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   TAYLOR 269 GA $271,050 $347,000 $419,425 $521,250 $53,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   APPLING 001 GA $271,050 $347,000 $419,425 $521,250 $53,000   Oct 1, 2011 - Dec 31, 2011
BRUNSWICK, GA (MSA) 15260   GLYNN 127 GA $271,050 $347,000 $419,425 $521,250 $168,000   Oct 1, 2011 - Dec 31, 2011
BRUNSWICK, GA (MSA) 15260   BRANTLEY 025 GA $271,050 $347,000 $419,425 $521,250 $168,000   Oct 1, 2011 - Dec 31, 2011
BRUNSWICK, GA (MSA) 15260   MCINTOSH 191 GA $271,050 $347,000 $419,425 $521,250 $168,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   DOOLY 093 GA $271,050 $347,000 $419,425 $521,250 $84,000   Oct 1, 2011 - Dec 31, 2011
CALHOUN, GA (MICRO) 15660   GORDON 129 GA $271,050 $347,000 $419,425 $521,250 $105,000   Oct 1, 2011 - Dec 31, 2011
DALTON, GA (MSA) 19140   MURRAY 213 GA $271,050 $347,000 $419,425 $521,250 $105,000   Oct 1, 2011 - Dec 31, 2011
DALTON, GA (MSA) 19140   WHITFIELD 313 GA $271,050 $347,000 $419,425 $521,250 $105,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   HART 147 GA $271,050 $347,000 $419,425 $521,250 $105,000   Oct 1, 2011 - Dec 31, 2011
EUFAULA, AL-GA (MICRO) 21640   QUITMAN 239 GA $271,050 $347,000 $419,425 $521,250 $126,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   MITCHELL 205 GA $271,050 $347,000 $419,425 $521,250 $52,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   JENKINS 165 GA $271,050 $347,000 $419,425 $521,250 $26,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   TALIAFERRO 265 GA $271,050 $347,000 $419,425 $521,250 $104,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   COBB 067 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   PIKE 231 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   BUTTS 035 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   HEARD 149 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   HENRY 151 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   LAMAR 171 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   BARROW 013 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   BARTOW 015 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   WALTON 297 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   COWETA 077 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   DAWSON 085 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   DEKALB 089 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   FULTON 121 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   JASPER 159 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   NEWTON 217 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   CARROLL 045 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   CLAYTON 063 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   DOUGLAS 097 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   FAYETTE 113 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   FORSYTH 117 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   PICKENS 227 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   CHEROKEE 057 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   GWINNETT 135 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   HARALSON 143 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   PAULDING 223 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   ROCKDALE 247 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   SPALDING 255 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
ATLANTA-SANDY SPRINGS-MARIETTA, GA (MSA) 12060   MERIWETHER 199 GA $320,850 $410,750 $496,500 $617,000 $250,000   Oct 1, 2011 - Dec 31, 2011
STATESBORO, GA (MICRO) 44340   BULLOCH 031 GA $271,050 $347,000 $419,425 $521,250 $125,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   TREUTLEN 283 GA $271,050 $347,000 $419,425 $521,250 $82,000   Oct 1, 2011 - Dec 31, 2011
FITZGERALD, GA (MICRO) 22340   IRWIN 155 GA $271,050 $347,000 $419,425 $521,250 $62,000   Oct 1, 2011 - Dec 31, 2011
FITZGERALD, GA (MICRO) 22340   BEN HILL 017 GA $271,050 $347,000 $419,425 $521,250 $62,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   MILLER 201 GA $271,050 $347,000 $419,425 $521,250 $62,000   Oct 1, 2011 - Dec 31, 2011
NON-METRO 99999   WILKINSON 319 GA $271,050 $347,000 $419,425 $521,250 $31,000

These new limits represent about a $25,000 reduction from the previous limits.

For more information check out www.hud.gov.

 

The second major change will be with the USDA loan.  The financed funding fee will be reduced from 3.5% to 2%.  The other change will be the implementation of a monthly funding fee of .30%.  With this change, it is going to increase the monthly payment. An increase in the monthly mortgage payment will result in a reduction of the purchase price.  

For more specific information on how these changes will impact you and your home purchase, please give me a call.

 

 

 

 

 

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Kathy Sheehan Senior Loan Officer

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770.634.4021

F:

404.745.8060

 

Bay Equity LLC

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

Comment balloon 3 commentsKathy Sheehan • September 30 2011 08:57AM

Comments

Very good post. The lower loan limits will not help the buying and refinance market. I have yet to understand about the reasoning for this change. I can understand the reason for the monthly USDA fee.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) about 7 years ago

Good information for consumers.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 7 years ago

Thanks for stopping by.  Everytime we have a change like this, there always seems to be someone that gets caught.  Case numbers would have to be pulled today to use the old figures.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 7 years ago

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