There was some confusion as to how long the latest FHA loan limit increase is going to last, which I blogged about here. Was it through the end of 2011, or 2 full years through 2013, or just through next year and it ends 2012? So the verdict is in, and the latest FHA loan limit increase expires at the end of 2012. So come December 2012, there will be another political fight, and another decision to temporarily fix something.
The official language from FHA is below:
“For FHA mortgages with case numbers assigned on or after November 18, 2011 through December 31, 2012:
The FHA Floor and Ceiling loan limits will remain the same as those that were in effect from January 1, 2011 through September 30, 2011, as announced in ML 10-40.”
The loan limits in affect January 1 2011 through September 30, 2011 was as high as $729,750 for high cost areas, so this is what remains in affect until the end of 2012, not through 2013.
It seems all our political decisions these days are temporary, whether related to spending, tax cuts, political appointments, loan limits, entitlement reform, health care, etc. I am not sure how the geniuses at the top of our government expect individuals, families and businesses to make long range decisions and plans when every decision is a short term one. But maybe they know something that I do not….
So get it while its hot, FHA loans up to $729,750 through December 2012, hurry, hurry, hurry!