VA and FHA Loan Limits

2010 loan limits are out for FHA and VA:

VA – the maximum 0 down loan in Snohomish/King/Pierce Counties is $481,250 for 2010. That’s down from $550,000 in 2009.

FHA – the maximum loan amount for Snohomish/King/Pierce Counties is $567,500 for 2010. No change from 2009.

FHA has issued guidance stating that borrowers are not eligible for FHA loans if they pursued a short sale agreement just to take advantage of declining market conditions and purchase a similar or superior home within a reasonable commuting distance. If all payments are made as agreed 12 months prior to a short sale, the borrower may still be eligible for FHA financing. Borrowers who were in default at the time of the short sale are not eligible until 3 years after the date of the short sale.