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Has anyone funded an FHA Loan since the new max deductions

My Wife and I were fully approved for an FHA loan for the old max in our area $403,750. All of our documents stated we would close on Oct 15, we even have an e-mail from the Lender that they confirmed with there underwriter that if we had a loan number beore Oct 1 we didn't have to close by Oct 1. We were supposed to sign closing docs in two days and the lender called our broker today and said they could no longer use the old max limits so our loan couldn't go through. Has anyone had any experience with this yet????
  • October 04 2011 - Reno
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Answers (4)

your lender was wrong, a simple search on the FHA web site would have provided the answer.

FHA said the loan had to have a loan commitment by the 30th; not just a case number.

That aside, most lenders stopped funding them late September.
  • October 05 2011
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With FHA you had to fund by 9/30.
However, we have a conforming deal in process now with docs dated 9/30, signed 10/2 and will fund tomorrow (into the month).
Some lenders like the one funding this deal took submissions on High Balance FHA until 9/1 and HB Conforming loans until 9/18. They bet the higher loan limits would be extended at the last minute. If they won the bet they would just fund the loans as usual after 10/1. Since they lost, the bet the consolation prize is they funded as many vanilla deals as they could before the curtain went down.

It is a pretty good all around bet that the loan limits will be increased once again by the end of the year or so.

  • October 05 2011
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Everything I have read/been told since probably July is that no ifs ands or buts, the loan must fund by the 30th.  Does not matter when the case numer was issued.  I do not think any lender has discretion on this.  If you have in writing that you would be okay, I might suggest you retaining some counsel b/c I would think you have a case for some damages.  I am the farthest thing away from an attorney so by no means take this as legal advice.  At the vey least you should call HUD and report this lender for the misinformation that was given

  • October 05 2011
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It was up to the individual lender as to what date they stopped funding at the older higher limit. As a mortgage banker, we had to fund by Sept 30th. 

You might try calling around to different lenders in your area and see if they will fund with your FHA case number. If so, you old lender might be able to transfer your complete loan package or at the least, your appraisal.

Good Luck in your search.

  • October 04 2011
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