FHA Modifies Requirements for Combined Loan Amounts

The US Department of Housing and Urban Development (HUD) recently released Mortgagee Letter 2010-36, Requirements for Combined Loan Amounts, which eliminates the requirement that the sum of all liens must not exceed the geographic maximum loan amount for mortgages insured by the Federal Housing Administration (FHA). Effective for case numbers assigned on September 7, 2010, or later, only the FHA-insured lien is subject to the geographic maximum loan amount. This applies to both purchases and refinances.

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Source: NAR 10/2010