Effective March 6, 2008, HUD will offer temporary FHA Jumbo Mortgage loan limits that will range from $417,000 to $729,750 (Limits). Overall, the change in FHA mortgage loan limits will help provide economic stability to America’s communities. The maximum FHA mortgage loan limits amount of $729,750 will only be applicable to extremely high-cost metropolitan areas. Previously, FHA mortgage loan limits in these very high-cost areas were capped at $362,790.
The Economic Stimulus Act of 2008 permits FHA to insure FHA mortgage loans on amounts up to 125 percent of the area median house price, when that amount is between the national minimum ($271,050) and maximum ($729,750). The new minimum and maximum FHA mortgage loan limits are based on 65 percent and 175 percent of the conforming loan limits for Government-Sponsored Enterprises in 2008, which is $417,000. The FHA mortgage used a combination of existing government data sets and available commercial information to determine the median sales price for each area. The change in loan limits are applicable to all FHA-insured mortgage loans endorsed with HUD’s publication of the increased loan limits today, and it is temporary.
