FHA Loan Limits Decreasing For Utah

FHA has decided to lower the amount of money they will loan up to in many counties in Utah. Here is a list of what they will currently be as of October 1, 2011.

Utah County: $271,050

Salt Lake County: $600,300

Davis and Weber Counties: $389,850

How Big Can A Mortgage Be And Not Be Considered Jumbo?

For the 4th consecutive year, the government has set the conforming mortgage loan size limit at $417,000.

A conforming mortgage is one that, quite literally, conforms to the mortgage guidelines set forth by Fannie Mae or Freddie Mac.

The 2009 conforming loan limits, as released by the government, are:

1-unit properties : $417,000
2-unit properties : $533,850
3-unit properties : $645,300
4-unit properties : $801,950

Loans in excess of conforming loan limits are more commonly called "jumbo", or "super jumbo" home loans, depending on their size.

Out-sized mortgages like these are often more costly than their conforming-mortgage counterparts because jumbo loans are not guaranteed by the U.S. government like Fannie Mae loans are.

There are loan limit exceptions, however.

Left over from the Economic Stimulus Act of 2008, specific, "high-cost" areas around the country have their own conforming loan limits, not to exceed $625,500. There are 59 designated high-cost regions in the U.S., most of which are in California.

Loan limits are re-assigned each year, based on "typical" housing costs around the country. Since 1980, as home prices have increased, so have conforming loan limits. As home prices have fallen in recent years nationwide, however, the conforming loan limit has not.

Conforming Loan Limits Raised

The conforming loan limits have officially been raised in higher priced counties accross the US.

The current conforming loan limit is 417,000, any loan above that is considered a Jumbo Loan.

Now, the new conforming loan limit is 729,750. Which means many people will be able to refinance into a much better loan that used to have a jumbo loan.

Click here to see if your county is included in the loan limits

http://www.ofheo.gov/media/hpi/AREA_LIST.pdf