Secretary Preston of the US Department of Housing and Urban Development announced the new Federal Housing Administration (FHA) loan limits for 2009. Beginning January 1st FHA will insure single-family home mortgages up to $271,050 in all areas and up to $625,500 in high cost areas.
Because of the 2008 Stimulus Package, the maximum FHA loan limit was temporarily raised to $729,750 through December 31, 2008. However, the new maximum of $625,500 is still a significant increase over the $362,790 limit in effect prior to the Stimulus Package. Secretary Preston stated “these new loan limits will ensure FHA can to continue help struggling homeowners refinance into safe, affordable government-insured loans, and allow many first-time buyers take advantage of today’s buyers market”.
For conforming mortgages, the Housing and Economic Recovery Act links the maximum loan limit to a house price index chosen by the new Federal Housing Finance Agency (FHFA). For 2009 the national conforming limit will remain at the current level of $417,000.
Unfortunately for those in the Triangle the news is not so good. After January 1st FHA limits in Wake County will actually decrease from the current $295,000 to $271,050. The same is true for Johnston, Franklin and Harnett County. For Orange and Durham County there will be no change, with loan limits remaining at $334,650.
Another important item to remember is that FHA will be increasing the minimum borrower contribution on January 1st. Currently borrowers needed to put in 3% of the sales price or appraised value (whichever is lower), but in 2009 this will increase to 3.5%. This is effective on applications submitted after January 1st, and approvals prior to then may be able to proceed under the current guidelines.
So for anyone interested in buying under the current loan amount/down payment requirements, time is short to submit an application!
Raleigh NC Does It Again
Another great distinction for Raleigh, North Carolina! Forbes Magazine just named Raleigh the #1 place for business and careers.
The ranking was based on a mixture of income/job growth, availability of education, cost of living and doing business and crime rates. Based on these Raleigh was named the overall best metro area. Also on the top 20 list was Durham, which made it in at #12.
This is great news for our residents and for those planning to relocate to Wake & Durham County. From personal experience as a small business owner, I would agree that the Triangle Region is a great place to live and work
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