FHA Oregon SF Mortgage Limits in CY 2009 Going Down for Some Counties.

HUD/FHA has published a new mortgagee letter HERE communicating FHA mortgage limits for CY 2009. Letter says that these limits will apply to loans with credit approval on or after January 1, 2009.

Mortgagee Letter includes attachments showing areas with high cost limits (Oregon has none) and areas where limit is set at 115% of median sales price for area (Oregon has 9 areas/ 13 counties listed). All other areas remain at the floor of $271,050.

For Oregon Areas With New Limit at 115% of Median House Price, Largest Decrease is 34%, Portland Metro Decrease is 13%.
Because 2008 saw temporary FHA mortgage limit increases related to the economic stimulus bill and because median sales prices have been declining, several Oregon areas will see reduced FHA mortgage limits in 2009.

Jackson has the largest decrease at 34%, while Portland metro counties will see decrease of 13% from $418,750 to $362,250.

At the start of 2009 Hood River county will have the highest FHA mortgage limit, displacing Deschutes county whose reduced limit will drop them behind the Portland metro area and Curry county. The Jackson county ranking dropped the most; they moved from 2nd to 8th among the 9 metro areas with limits now computed using the 115% median price criteria.

My side by side comparison of current and CY FHA Single Family 2009 limits for Oregon counties is HERE. (Note that for Lane and Josephine counties I label decreases as "apparent" because these areas are not listed in the attachment to the Mortgagee Letter as areas using the 115% median limit, meaning they have apparently reverted to using the floor limit. If I find out subsequently that these limits do not decrease for some reason, I will do a new post).

(My earlier post HERE highlighted the temporary 2008 FHA mortgage limit increases).

NOTES:

1. FHA Median home prices for metro areas are calculated based on highest median price for county within the metro area.
2. HECM/Reverse Equity FHA loans have a separate uniform national mortgage limit that went into effect on November 1st--it's $417,000.
3. In the future to see the CURRENT FHA mortgage limit for any area in Oregon (or anywhere else in the country), go HERE, and use the pull down menu to find the mortgae limit for your area of interest.