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Sales Above the New Loan Limits


  • To better understand how the change in loan limits would impact local markets, NAR Research looked at FHA purchase loans originated between January 1, 2011 and September 30, 2011 (the last day prior to the new limits).
  • Of the 10 counties with the largest number of FHA purchase loans originated above the new limits in the first nine months of 2011, nearly all of them were in markets with high delinquency rates.
  • Nine out of ten of these markets had a 90-day delinquency rate above the national average 7.2% in August.
  • Slower sales and/or a decline in prices could exacerbate this trend.  Furthermore, the number of sales impacted by the new limits is likely much higher as these figures exclude GSE lending and loans held in the portfolio of private banks.

Ken Fears, Director, Regional Economics and Housing Finance

Ken Fears is the Manager of Regional Economics and Housing Finance Policy. He focuses on regional and local market trends found in the Local Market Reports and the Market Watch Reports . He also writes on developments in the mortgage industry and foreclosures.

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