Mortgagee Letter 2011-29
- Effective from October 1 to December 31 2011 (unless extension is passed)
- Reverse mortgages will remain the same until December 31: $625,500
- Exception to new loan limits for forward mortgages:
- Refis of existing FHA loans that exceed loan limits
- Purchase loans that are “credit approved” by September 30
- Loans that are closed by September 30, but not insured
- New limits will be: One unit — $271,050 base $625,500 high cost
- Refis of existing FHA mortgages cannot exceed the original principal balance, no more than 12 year more than the unexpired term and the mortgage payment must be reduced.
- Streamline refis that don’t close by September 30 must also meet above requirements.
- Credit approval means sign-off by a DE underwriter, including the appraisal. FHA/VA application addendum and transmittal summary must be signed by underwriter as well and terms can’t change after September 30.
- New loan amounts available at http://www.hud.gov/pub/chums/file_layouts.htm