New FHA Loan Limits. On October 1, 2011, the Federal Housing Administration (FHA) will implement the new single-family loan limits as specified by the Housing and Economic Recovery Act of 2008 (HERA).  As a result, FHA will reduce loan limits in the highest cost metropolitan areas of the country while limits would remain unchanged in most other parts of the nation. Here in Arizona the FHA loan limit will be $271,050 in Maricopa, Pinal and Pima counties.

These new FHA loan limits were scheduled to take effect in January of 2009 but continuing strains in credit markets led the Congress to delay implementation.  The result has been nearly three years of higher loan limits for some areas based on the Economic Stimulus Act of 2008 (ESA). 

Barring any new action by the Congress, many affected areas will have lower FHA loan limits on October 1, 2011.   The current standard (floor) loan limit for areas where housing costs are relatively low will remain unchanged at $271,050 for one-unit properties. 

The change in FHA loan limits will affect 669 counties across the country, out of a total of 3,234 jurisdictions in which FHA insures home loans.  Most loan applications with an FHA case number assigned on or after October 1, 2011, will be subject to the new limits. In addition, there are exceptions for loans that were issued case numbers on or before 9/30/11 and meet all of the credit approval criteria detailed in Mortgagee Letter 2011 -29. To Pre-qualify please call Ed Heiser of The Heiser Team at 480-830-8030. Follow this link to read the Mortgagee Letter.

Ed and Barbara Heiser/ The Heiser Team 480-830-8030 Office