Increased FHA High-Cost Loan Limits Now Available

December 9, 2011Company News

Subject: Increased FHA High-Cost Loan Limits Now Available
Date: 12/09/2011

In response to the changes prompted by the Consolidated and Further Continuing Appropriations Act of 2012 (which President Obama signed into law on November 18, 2011), HUD recently issued Mortgagee Letter #2011-39 announcing the acceptance of the return to the “higher” Conforming FHA loan limits for properties located in designated “High-Cost” areas.

Specifically, effective for case numbers assigned November 18, 2011 through December 31, 2011, FHA’s maximum loan limits have been restored to the “temporary” High-Cost loan limits that were in effect from January 1st through September 30th of this year. As a result, the loan limit for Carrington Wholesale Lending FHA loans in High-Cost areas is once again $729,750 for a one-unit property (and higher for multi-unit properties).

Please note that loans having case numbers assigned between October 1, 2011 and November 17, 2011 continue to be subject to the lower loan limits published in FHA Mortgagee Letter #2011-29. The actual loan limit for any given loan in the United States varies by county and can be determined using the look-up tool available on HUD’s website at: https://entp.hud.gov/idapp/html/hicostlook.cfm. In order to accommodate the various changes to the maximum Conforming loan amount that have been made over the past year, the look-up possibilities on that website include the following timeframes:

  • Calendar year 2010
  • January 1, 2011 – September 30 , 2011
  • October 1, 2011 – November 17, 2011
  • November 18, 2011 – December 31, 2011
  • Calendar year 2012

The CASH system has been updated to recognize any applicable loan-limit changes and to accurately differentiate a Conforming loan from a Jumbo loan, based on product type and ZIP code.

If you have additional questions, please consult with your Account Executive.

Thank you for your continued business!

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