The Department of Housing and Urban Development (HUD) has released Mortgagee Letter 2011-29, that maintains the current HECM loan limit of $625,500 through December 31, 2011.
The mortgagee letter extends the current limit that was set to expire on September 30, 2011. The letter does note that this notice will apply unless legislation is enacted that would alter the extension of these lending limits. Such action would prompt an updated mortgagee letter from HUD. The lending limit also applies to special exception areas: Alaska, Guam and the Virgin Islands.
The letter also established forward mortgage FHA lending limits to also apply through the end of the year. The maximum lending limit for a single unit FHA-insured mortgage is being reduced from the $729,750 to $625,500, or 150% of the conforming loan limit of $417,000.