New FHA Loan Limits for 2009

As we head towards the end of the year, so too do we head towards the end of beefed up FHA loan limits. In 2009, HUD is establishing these new limits.

In 2009, for Kitsap, they will be cut back considerably to:

1 Unit – $307,050 in 2008 the limit was–>$475,000

2 Unit – $393,050 in 2008 the limit was–>$608,100

3 Unit – $475,150 in 2008 the limit was–>$735,050

4 Unit – $590,500 in 2008 the limit was–>$913,450

Across the water the loan limits will be higher for King County at:

1 Unit – $506,000 in 2008 the limit was–> $567,500

2 Unit – $647,750 in 2008 the limit was–> $726,500

3 Unit – $783,000 in 2008 the limit was–> $878,150

4 Unit – $973,100 in 2008 the limit was–> $1,091,350

How do they come up with these amounts? HUD explains that:

“The Act says that the new FHA loan limits will be set at 115 percent of the median house price in a given area, as determined by HUD, but can not be lower than 65 percent of the conforming loan limit (the national floor). Also, the FHA mortgage limit cannot exceed 150 percent of the national conforming loan limit (the national ceiling).”

For more info visit HUD.