FHA Mortgages, Lending Guidelines, Mortgage Guidelines

2011 FHA Maximum Loan Limits – Why You Need to Know

December 7, 2010 by · 2 Comments 

2011 FHA Maximum Loan Limits by James BarathEvery year around this time, lenders receive confirmation of the coming year’s Fannie Mae and FHA maximum loan limits. Prior to the real estate bubble it was always a forgone conclusion that the Fannie Mae and FHA maximum loan limits would increase as this was a natural function of increasing home prices.

In the past several years however there has been a fear that the Fannie Mae and FHA maximum loan limits would be decreased as home prices have plunged and stagnated throughout country and even right here in Northwest Indiana.

Surprisingly, both 2011 Fannie Mae and FHA maximum loan limits remained unchanged from 2010. More attention historically speaking would have been given to the Fannie Mae maximum loan limits.

In 2011 much of the talk will be about FHA insured home loans as the home loan pendulum has swung from conventional loans to FHA loans. To illustrate this fact here is a look at the latest trends.

“FHA loans were the most common type of loan, with 43 percent of buyers choosing this option… More than half of first-time buyers (56 percent) chose FHA loans…”

*Profile of Home Buyers and Sellers 2010 – National Association of Realtors

If FHA loans are becoming such a large piece of real estate finance options, you might want to know how it could affect you as a home buyer, a homeowner who wants to refinance or as a homeowner who desires to sell their home.

Understanding how much the FHA maximum loan limit is not as simple as you might think unfortunately. There is not just one FHA maximum loan limit. Besides the maximum loan limit variance between a single family home and a four-family home, property location is the most important criteria.

FHA maximum loan limits are geographically based and whether or not that region is declared as a standard FHA Forward area, a low cost area (floor), a high cost area (ceiling) or a special exception area (i.e. Alaska, Hawaii, Guam and Virgin Islands). Different FHA maximum loan limits also apply to Home Equity Conversion Mortgages (aka. reverse mortgage) and the HOPE for Homeowners program.

Not only do FHA maximum loan limits vary by region, but more importantly they will vary by county. For instance, the FHA maximum loan limit for a single family home in Porter County Indiana is $410,000. Meanwhile in the adjacent county of La Porte County Indiana the FHA maximum loan limit for the same home is only $271,050.

If you are in the process of buying a home, selling a home or refinancing your home in Northwest Indiana, please contact us to learn how the 2011 FHA maximum loan limits could impact your next real estate decision.

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James K Barath, CMPS®

James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, Certified Military Housing Specialist® and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!

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2 Responses to “2011 FHA Maximum Loan Limits – Why You Need to Know”
  1. Jim Sims says:

    This is great information for both buyers and sellers in Chesterton Indiana! Thanks for the information.


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