2012 Loan Limits by Agency

About The Author

Stacey Sprain - As an NAMP® staff writer, Ms. Stacey Sprain is currently a NAMP® member in good standing, and is a NAMP® Certified Ambassador Loan Processor (NAMP®-CALP). With over 15+ years of mortgage banking experience, Stacey is also a Quality Control Manager for a major mortgage lending institution. If you would like to become a volunteer writer for us, please email us at: blog@mortgageprocessor.org.

After much anticipation, all of our major agencies have now released their respective communications regarding 2012 loan limits for conventional, FHA and VA lending.

Fannie Mae & Freddie Mac- Conventional Loan Limits
Resources:
• Fannie Mae Lender Letter 2011-08: Confirmation of Conventional Loan Limits for 2012
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2011/ll1108.pdf

Need FHA Training? CLICK HERE: http://www.FHA-Classes.org

• Freddie Mac 2012 Conforming & Super Conforming Loan Limits Page: http://www.freddiemac.com/sell/selbultn/limit.htm?type=popup&width=700&h...

Through December 31, 2012, Freddie Mac is maintaining the same base conforming loan limits they have to date for 2011.

1 Unit $417,000 for all states except AL, HI, Guam and U.S. Virgin Islands
2 unit $533,850 for all continental states except AK, HI, Guam and U.S. Virgin Islands
3 unit $645,300 for all continental states except AK, HI, Guam and U.S. Virgin Islands
4 unit $801,950 for all continental states except AK, HI, Guam and U.S. Virgin Islands

1 unit $625,500 for AK, HI, Guam and U.S. Virgin Islands
2 unit $800,775 for AK, HI, Guam and U.S. Virgin Islands
3 unit $967,950 for AK, HI, Guam and U.S. Virgin Islands
4 unit $1,202,925 for AK, HI, Guam and U.S. Virgin Islands

For note dates on and after 10/01/2011 – 12/31/2012, the following high cost area and super conforming loan limits are applicable as follows:

1 unit $417,001 - $625,500 high cost areas in continental states except AK, HI, Guam and U.S. Virgin Islands
2 unit $533,851 - $800,775 high cost areas in continental states except AK, HI, Guam and U.S. Virgin Islands
3 unit $645,301 - $967, 950 high cost areas in continental states except AK, HI, Guam and U.S. Virgin Islands
4 unit $801,951 - $1,202,925 high cost areas in continental states except AK, HI, Guam and U.S. Virgin Islands

Need FHA Training? CLICK HERE: http://www.FHA-Classes.org

1 unit $625,501 - $938,250 for AK, HI, Guam and U.S. Virgin Islands
2 unit $800,776 - $1,201,150 for AK, HI, Guam and U.S. Virgin Islands
3 unit $967,951 - $1,451,925 for AK, HI, Guam and U.S. Virgin Islands
4 unit $1,202,926 - $1,804,375 for AK, HI, Guam and U.S. Virgin Islands

For specific loan limits for each high-cost area, as released by the Federal Housing Finance Agency, visit http://www.fhfa.gov/webfiles/22760/FullCountyLoanLimitList2012_HERA-BASE...

FHA Loan Limits
Resources:

• FHA Mortgagee Letter 2011-39: Federal Housing Administration Maximum Loan Limits Effective October 1, 2011 through December 31, 2012
http://portal.hud.gov/hudportal/documents/huddoc?id=11-39ml.pdf
Attachment 1- Areas at Ceiling & Above
http://portal.hud.gov/hudportal/documents/huddoc?id=11-39mlatch1.pdf
Attachment 2- Areas Between Floor & Ceiling
http://portal.hud.gov/hudportal/documents/huddoc?id=11-39mlatch2.pdf

The 2012 loan limits are established for FHA under the authority of H.R. 2112, the Consolidated and Further Continuing Appropriations Act, 2012, Public Law 112-55 and apply to FHA forward mortgages insured under the following sections of the National Housing Act (NHA): 203(b) (FHA’s basic 1-4 family mortgage, including condominiums), 203(h) (mortgages for disaster victims), and 203(k) (rehabilitation mortgage insurance). The maximum claim amount and loan limit for HECMs remain at $625,500 as stated in Mortgagee Letters 10-40 and 11-29 for the remainder of 2011 and for calendar year 2012.

Here’s where it gets a little complicated and why it will be of utmost importance to be aware of specific FHA case assignment dates over the course of the next few months for loan limit accuracy:

• FHA case numbers assigned 10/01/2011 – 11/17/2011: The lower limits apply unless they meet the criteria for exceptions to those loan limits set forth in Mortgagee Letter 11-29 for:
o Mortgages with credit approval on or before September 30, 2011
o FHA-to-FHA Refinance transactions

Need FHA Training? CLICK HERE: http://www.FHA-Classes.org

• FHA case numbers assigned 11/18/2011 – 12/31/2011: The Forward loan limits (floor, ceiling and county loan limits) that were in effect from January 1, 2011 through September 30, 2011, as announced in ML 10-40, shall apply

• FHA case numbers assigned on and after 01/01/2012 – 12/31/2012: The FHA Floor and Ceiling loan limits remain the same as those that were in effect from January 1, 2011 through September 30, 2011, as announced in ML 10-40. In addition, the individual county limits included in Mortgagee Letter 2011-39 attachments I and II will apply.

HUD identifies six (6) counties in the states of Alaska, New Mexico and North Dakota that have loan limit increases for Calendar year 2012 versus those that have been in effect during 2011: Bristol Bay Borough, AL; Kodiak Island AK; Petersburg Census Area, AK; Taos County, NM; Billings County, ND; and Stark County, ND.

I know, confusing right? The best advice to keeping loan limits straight is to avoid trying to read and define all of the different Mortgagee Letters and attachments and instead simply refer to FHA’s Loan Limit website at https://entp.hud.gov/idapp/html/hicostlook.cfm. At the site, you have the ability to customize search criteria in order to determine the exact maximum loan limit for the area in question based on selection of the case assignment date range from the dropdown box. This is the absolute best option for assuring your loan is structured with the correct max loan amount. Underwriters should be incorporating the use of this site for all FHA loans over the next several months in order to apply checks and balances to the underwriting of FHA mortgages as a way of assuring loans don’t get through systems with higher than allowable loan amounts.

VA Loan Limits
Resources:

• VA 2012 County Loan Limits
http://www.benefits.va.gov/HOMELOANS/docs/Loan_Limits_2012_Dec_2011.doc

Need FHA Training? CLICK HERE: http://www.FHA-Classes.org

Keep in mind that VA does not impose a maximum amount that an eligible veteran may borrow using a VA-guaranteed loan; however loan limits establish the maximum possible guaranty on a loan. The maximum guaranty amount for loan amounts up to $144,000 is $36,000. For loans over $144,000, the maximum guarantee is 25 percent of the conforming loan limit of $417,000 ($104,250) except for certain high cost areas in Alaska, California, Colorado, Connecticut, District of Columbia, Guam, Hawaii, Idaho, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Utah, Virginia, Virgin Islands, Washington and West Virginia where a veteran with full entitlement may borrow up to the high cost limit for the area with VA guaranteeing 25 percent of the higher loan limits. Veterans may be eligible for higher loan amounts when they provide acceptable downpayment to cover the difference between VA’s maximum guarantee and the required 25 percent guarantee for the loan amount.

VA 2012 loan limits apply to VA closed on and after January 1, 2012. Refer to VA’s list of high cost states/counties at http://www.benefits.va.gov/HOMELOANS/docs/Loan_Limits_2012_Dec_2011.doc.

SOURCE: Published by NAMP® Publishing Group, a division of the National Association of Mortgage Processors (NAMP) (http://www.mortgageprocessor.org)