2009 FHA loan limits announced!
Written on Dec 11, 2008 by Charles Kim
So for most home buyers in the country the magic loan amount (not purchase price) has been $417,000. One dollar above that amount and you are categorized into the, drum roll please……JUMBO Loan category which carries a much higher interest rate than the conventional loan amount.
In Seattle, to help the inflated home prices along with other inflated home markets around the country, FHA temporarily raised the ‘conventional loan’ limits to $569,000 in 2008. This meant a person now had the opportunity to purchase a home in a over inflated market and still realize a favorable interests rate as long as they stayed below the $569,000 loan amount.
Well this great opportunity expired on Dec. 31, 2008 with the prospective conventional loan limit going back down to $417,000. In good foresight, FHA has reintroduced a higher limit (albeit not as high as 2008) of $509,000 loan limit. If you are looking to buy in Seattle or many parts of the greater eastside, this is a blessing. Now only if the federal government would assess only using the median home price of Seattle and Bellevue and not include Tacoma, would we really see the loan limits raised which would clearly indicate a higher conforming loan limit in the area. For now we’ll take what they are willing to give.
