In-Depth: Federal Housing Administration (FHA)

NAR Issue Summaries

Review NAR policy, and the legislative/regulatory outlook regarding FHA issues.
FHA Programs>
FHA Loan Limits>
FHA Low/No Downpayment>
Mortgage Loan Limits>

FHA Loan Limits

As a result of the passage of the American Recovery and Reinvestment Act of 2009, on February 25, 2009, HUD published changes to FHA's single family loan limits . Given that most of the loan limits decreased for 2009, most areas will revert to the higher 2008 mortgage limit.

For 2009, the maximum mortgage limit for an area is the higher of the limit that was in effect for 2008 or the current 2009 limit as stated in Mortgagee Letter 2009-07. The new loan limits, which are effective for any loan closed in calendar year 2009, are in effect through December 31, 2009. Please note that because the new limits are a comparison of 2008 and 2009 there is not a process for appealing the limits.

Find the FHA Loan Limits for Your Area>
Mortgagee Letter 2009-07: Loan Limit Increases for FHA>

Home Affordable Modification Program (FHA-HAMP)

The new FHA-Home Affordable Modification Program (FHA-HAMP), announced on July 30, 2009, allows borrowers with a FHA loan currently in default to use a partial claim of up to 30 percent of the unpaid principal combined with a loan modification.
Read more> 
FHA-HAMP Mortgagee Letter 2009-23> (Word: 57K)
FHA-HAMP Guidelines> (Word: 90K)
Learn more about the Making Home Affordable Program>