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New FHA Title I Loan Limits Effective Immediately

March 4, 2009

FHA Commissioner Brian Montgomery has signed and released a Mortgagee Letter to Title I lenders which announces an immediate increase to the loan limits under the existing FHA Title I program. The letter, sent to all Title I lending institutions, can be found on the MHI website by clicking here.

The key loan limit increase is the 'home only' limit which will rise immediately from $48,600 to $69,678. The increased loan limits fall under the existing Title I underwriting parameters and program, and will apply to all loan applications taken on or after the date of the Letter’s posting.

Any current FHA Title I lender will be eligible to originate loans under the increased Title I loan limits. **Please note that the remaining changes to the Title I program, including underwriting guidelines and new insurance system, will become effective at a later date and will remain a top focus for MHI in the coming weeks.

MHI has strongly advocated for the loan limit increases and for expedited Title I implementation, as well as for lifting the moratorium on Ginnie Mae Title I issuers, to advance liquidity for manufactured home lending. Thanks to all of our members and state association partners for their assistance in getting the loan limits increased as quickly as possible.

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