New FHA Loan Limits; St Louis Mortgage Interest Rate Update

On October 1, 2011, the Federal Housing Administration (FHA) will implement new single-family loan limits as specified by the Housing and Economic Recovery Act of 2008 (HERA).

As a result, FHA will reduce loan limits in the highest cost metropolitan areas of the country, while limits would remain unchanged in most other parts of the nation.

The new loan limits will only be in effect for a short period of time, October 1, 2011 through December 31, 2011, before HUD implements new maximum mortgage amounts for calendar year 2012. That announcement for 2012 is expected in November 2011.

Absent any authorizing legislation by Congress, Realtors with expected or pending contracts with FHA borrowers should be aware that new, lower loan limits will be implemented on October 1, 2011 for the St. Louis, Missouri Metro MSA.

St. Louis, Missouri MSA
Number of Units Period
Jan. 1, 2011 to
Sept. 30, 2011
Oct. 1, 2011 to
Dec. 31, 2011
1-unit $281,250 $271,050
2-unit $360,050 $347,000
3-unit $435,200 $419,425
4-unit $540,850 $521,250

The chart above is an example of the reduction in loan limits which vary for each high cost area across the nation. FHA has provided an easy lookup tool on their web site to determine if a property’s loan limit is affected by its location. HUD Lookup Tool.

The FHA ceiling loan limits will also be reduced to $625,500, $800,775, $967,950 and 1,202,925 for 1-, 2-, 3- and 4-unit dwellings, respectively.

HUD is not updating median prices at this time and there is no appeal period associated with the change of loan limits for October 1, 2011.

St. Louis MORTGAGE INTEREST RATES for September 7, 2011:

  • Conventional 30-Year Fixed 4.125%/ 4.375% APR
  • Conventional 15-Year Fixed 3.375%/ 3.520% APR
  • Conventional 5/1 ARM 2.750%/ 1.625% APR
  • FHA/VA 30 Year Fixed 4.00%/ 4.425% APR
  • Jumbo 5/1 ARM 3.125%/ 3.000% APR
  • Jumbo 15 yr Fixed 3.625%/ 3.875% APR
  • Jumbo 30 yr Fixed 4.875%/ 5.125% APR

*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.

Paramount Mortgage is a locally owned Mortgage Banker; we just celebrated our 40th anniversary. Great rates and programs are secondary to what is most desired in a lender relationship. The most sought-after aspects in this industry cannot be easily translated onto paper…learn more about us here.

For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at or you can visit our company website at

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