Juicy Estates: Mortgage Blog

Low Ceiling….FHA and Conforming Loan Limits Announced

In a seemingly bizarre move the new FHA loan limits were announced and while we are in the midst of the worst housing crisis in the history of modern man they are actually……. going down!  The new FHA loan limit for Miami Dade, Broward and Palm Beach Counties will be $345,000 which is a signficant drop from the current expanded loan limit of $423,750.  This move, not unlike the plot of a Kubrick film leaves my head reeling in a sea of endless second guessing wondering if it is I that has gone insane.

Meanwhile as if the antidote for the poison forced upon us by HUD with the reduced FHA loan limit the conforming loan limit for Miami Dade, Broward and Palm Beach Counties will remain at $417,000.  Both the FHA and conforming loan limits are intended to be a function of the average sales price in a given market area so it is easy to determine why the FHA loan limit was reduced but this simple reasoning ignores the reality of the current market in South Florida.

A little good news is that interest rates on Jumbo mortgages have dropped almost 1% since this time last month.  Currently on loans in excess of $1.5 million interest rates are in the mid 6% range which is cheap money indeed.

This entry was posted on Wednesday, November 12th, 2008 at 10:18 pm and is filed under Home, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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