The 2008 Temporary Loan Limits will expire on Wednesday, Dec. 31, 2008, for the High Balance Conforming Loan Program and the High Balance FHA Loan Program.

 

 

 Yes, after Labor Day we all start to clean house and close out the year.  No, I have taken the sweaters out of storage yet and yes I am wearing Capri’s today (it is 89 degrees outside). I am receiving notices from my lenders that loan limits are going back to normal after January 1,2008.

 

Loan limits (max in certain areas):

 

Before 12/31/2008     After 1/1/2009

 

1 family                        729,750            417,000

2 family                        934,200            533,850

3 family                     1,129,250            645,300

4 family                     1,403,400            801,950

 

 

 

The loans must close and fund before that date. This goes for regular mortgages as well as FHA loans.  Rumor has it that not only will FHA lower the loan amounts but they will also change their guidelines after 1/1/2009.

Dale Siegel