Friday, July 15, 2011

Updated: Impact on Oregon of Possible Oct 1 Changes in FHA SF Mortgage Limits.

Update: Thanks to alert reader who caught error, I correct the link to the table below showing county limit changes for those counties impacted by the change. 

Market analysis from HUD is HERE.   

I have prepared a table HERE that shows the current limit vs what the new [HERA] limit would be for impacted counties in Oregon and have pasted below a table showing the number and dollar volume of Oregon FHA loans that would have exceeded the HERA limit in 2010. 

Some Observations
  1. 17 Oregon counties would see lower loan limits, including ALL metro counties in Oregon. 
  2. Jackson county would see the largest decrease of 34% /$143,050 from their current limit. The new Jackson county limit would be $279,450.
  3. Portland metro counties would have the highest loan limit in the state ($362,250) whereas currently both Deschutes and Jackson county have higher loan limits that Portland metro counties.
  4. At CY 2010 loan volumes, only 5% of loan would exceed the new HERA based mortgage limit, representing 9% of $$ loan volume.
  5. For unaffected /non high cost counties the HERA limit would likely be the same as today, $271,050.
  6. Effective date of changes, absent congressional action, is October 1, 2011. Expect a flurry of apps in months proceeding that date as borrowers see projected cost differences vs. using jumbo loan products. 
  7. This could of course, CHANGE, as Congress could elect to extend the expiration date of the existing FHA mortgage limits.
You can find existing FHA mortgage limits for any area from HUD web page HERE

Originally created and posted on the Oregon Housing Blog.

1 comment:

  1. Tom - The "Here" link after "I have prepared a table," doesn't go to the table, but right back to your main page. Of course, I'm looking for impact o Corvallis. Thanks, Bob