New limit for high cost area-DC

[clafontant05]

Does anyone know how to get the new limit updated with the new FHA amount?I read a notice that said it was effective January 1st 2020, but i’m not able to get an updated letter from NACA.

Also why is it that no one is available to answer any questions by phone or by email?

[Nelsont]

Not sure exactly what you mean. Are you saying your qualification is bounded by 2019 numbers but could be more if it were not for the old limit?

[clafontant05]

Yes. As of now my qualification letter says the 2019 limit. I have asked about the new 202 FHA limit but i’m being given confusing answers.

1 person says that the new limit won’t be effective for NACA until July 1st.

Another person says that the new limit remains unchanged.

My counselor told me 2 weeks ago to use the new limit to make an offer but now tells me I can’t.

I don’t know which way to proceed here

[Emerald1516]

New conforming loan limits for all lenders not just naca come into effect 7/1/2020.

[clafontant05]

I’m sorry but I was just told yesterday by the DC office manager that NACA does not follow FHA loan limits and at this time there are no indications that NACA will change the loan limit. I actually have this in an email. So do you see why this is very confusing for me?

[clafontant05]

And also how do I go about getting the new limit after July 1st if that is the case. Maybe the DC office is not aware of this?

[Nelsont]

I think the confusion lies in the fact that the DC office is taking the literal translation. If you are indeed asking about “FHA” loan limits in your email then they are correct because for one naca does not follow FHA rules and two FHA does not assign the limits you are referring to.

It is the FHFA (Federal Housing Finance Agency) not the FHA (Federal Housing Administration) that assigns the conforming loan limit regulation. One is a HUD agency (FHA) that deals with low income and first time buyers among other things and the other is a bank regulating body (FHFA) that governs what banks can and cannot do among other things if they want to operate in the US.

Naca absolutely follows the FHFA conforming loan limits as is evidenced on the naca website, in your workbook and of course on here in the forum. As recently as March 2020 there were members on this forum in the DMV taking advantage of the high income areas of DC through the FHFA conforming loan limits at the DC office.

One the limit goes into effect it becomes an official federal regulation. It is automatic.

I suspect if you clarify to the DC office you mean FHFA then come July 1 you will have good news 🙂

• This reply was modified 8 months, 1 week ago by Nelsont.

[quietboo]

what are the new limits for 2020 for the DMV area? where is the information posted? thanks

[Nelsont]

You can view county by county data on this link. The gray counties follow the conforming loan limit. The highlighted counties have higher limits.

https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limits-Map.aspx

[Emerald1516]

What Nelsont said is correct you are conflating terms. NACA has nothing to do with FHA, FHA limits are actually much lower than FHFA limits.

This post from Tim Trumble elaborates a bit on when they come into effect. http://forums.naca.com/?topic=2019-vs-2020-conforming-loan-limits

[clafontant05]

Ok thank you. So who do we contact in the DC area to get this resolved? Based on your answer it seems that some members are able to get the new limit while other members are being told that it’s not happening.

I have emailed my counselor and her office manager but we get crickets.

[Nelsont]

All members qualifying before 7/1/20 will receive 2019 guidelines. Any MC who uses 2020 figures is probably doing so off-script and probably believes the member will not be in a situation to use the 2019 numbers. The reason for the discrepancy in the answers is likely due to the vastly unique differences in everybody’s files combined with the judgement calls of different counselors.

As of right now the 2019 regulations are still in effect. On July 1 you should be able to move forward with the 2020 limits. If for some reason you still cannot then you would need to have your MC resubmit for qualification.

[clafontant05]

Was this information communicated to all the offices? Because again we are being told that this NACA has chosen not to increase aquisition limits to the 2020 limit.
Is there someone in the DC office that I can call to clarify this matter?

[Emerald1516]

I spoke with the office manager in Chicago and she stated it’s NOT the qualification date but the date you sign your bank application that matters. So for contracts after 7/1/2020 the higher conforming loan limits apply. However, Chicago is NOT a high cost area so maybe that’s why it’s different from DC.

It seems to me BOA and Naca would want to apply the FHFA rules uniform in the same fashion as all other lenders. weird

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